UAE SAYS OPEC EXIT DRIVEN BY ECONOMIC STRATEGY, NOT POLITICS, AS OIL MARKET TENSIONS AND OUTPUT PLANS INTENSIFY. (PHOTO).

 UAE says OPEC exit driven by economic strategy, not politics, as oil market tensions and output plans intensify

The United Arab Emirates says its decision to leave OPEC and OPEC+ is driven by long-term economic planning and energy strategy rather than political disagreements, according to the country’s energy minister. The statement comes after the Emirates announced it would exit the producer group, which it has been part of since 1967, with officials stressing that the move reflects national priorities and evolving production goals rather than tensions with member states.

Energy Minister Suhail Mohamed Al Mazrouei said the decision followed a broad review of the country’s production policy and future capacity. He emphasized that the UAE remains committed to being a stable and reliable global energy supplier, adding that the exit reflects a sovereign choice tied to its economic vision and development of its energy sector. He also rejected suggestions that the move signals divisions with other OPEC members.

The UAE’s departure marks a significant shift for one of the most influential members of the oil alliance outside of Saudi Arabia. For years, the country has played a key role in OPEC+ decision-making due to its spare production capacity and ability to help stabilize global oil markets during supply disruptions. Energy analysts note that the UAE and Saudi Arabia together account for a large share of the world’s flexible oil supply, giving both countries outsized influence during periods of global energy volatility.

Before regional conflicts disrupted production, the UAE was producing just over 3 million barrels per day in line with its OPEC+ quota. Officials have since targeted expanded capacity of up to 4.9 million barrels per day, although current output is estimated to be significantly lower due to ongoing disruptions affecting energy infrastructure and shipping routes in the region.

Oil markets have remained volatile amid broader geopolitical tensions, with benchmark crude prices rising sharply in recent trading sessions. Analysts have pointed to renewed concerns over Middle East stability and potential supply disruptions as key drivers behind price gains, even as prices remain below recent highs reached earlier in the year.

In response to continued pressure on global energy flows, Abu Dhabi has also moved forward with plans to expand export infrastructure, including accelerating construction of a new pipeline to the port of Fujairah. The project is expected to significantly increase export capacity once completed and reduce reliance on the Strait of Hormuz, a critical and often vulnerable transit route for global oil shipments.