For 65 years, the Organization of the Petroleum Exporting Countries has stood as one of the most powerful alliances in the global economy. Born in Baghdad in 1960, OPEC has shaped the flow of oil, influenced the price of gasoline in every country on Earth, and shifted the balance of power from Western oil companies to resource-rich nations.
But on Tuesday, that alliance suffered a significant blow.
The United Arab Emirates—one of OPEC's most influential members—announced its decision to leave the organization. The official departure is scheduled for May 1. The announcement came quietly, almost without warning. The UAE stated that it planned to focus on its own production and supply chain, aligned with market needs and conditions, rather than coordinating with the broader cartel.
The timing could not be more precarious. At the very moment the UAE is walking away, Iran is closing the Strait of Hormuz—the world's most critical oil chokepoint. The combination of a departing major producer and a blocked shipping lane has sent shockwaves through global energy markets.
The UAE is not a minor player. It holds significant oil reserves—the kind that allow OPEC to respond to supply crises. Countries with spare reserves can decide to draw them down to stabilize prices or adjust market policies. The UAE has been one of OPEC's most reliable reserves holders.
But recently, the leading members of OPEC have distanced themselves from one another. The UAE, in particular, no longer shares the organization's position on key issues. Abu Dhabi has been expanding its influence across the Middle East, building ties with the United States and Israel—ties formalized in the 2020 Abraham Accords. This realignment has put the UAE at odds with other OPEC members, particularly Iran.
The UAE is not the first country to leave OPEC. In recent years, other nations have withdrawn, including:
Indonesia
Ecuador
Angola
The Philippines (though the Philippines was never a full OPEC member—this may refer to Gabon or another nation; verify)
Most of these departures were driven by disagreements over production quotas. The UAE's exit, however, came with no detailed explanation. The official statement simply cited "national interest."
To understand the significance of the UAE's departure, look at the numbers.
OPEC was founded in Baghdad in September 1960. Its 12 member countries together hold approximately 80% of the world's proven oil reserves. Current members include:
Saudi Arabia
Iran
Iraq
Kuwait
UAE (until May 1)
Venezuela
Nigeria
Libya
Algeria
Angola
Republic of Congo
Equatorial Guinea
Gabon
(Note: Your source listed "the United Arab Emirates" twice and referenced "the Arab League" interchangeably—clarified above.)
The daily production figures tell the story of who matters most:
Country Daily Oil Production (barrels)
Saudi Arabia 11 million
Iran 4.7 million
UAE 4.6 million
Iraq 4 million
Kuwait 2.7 million
The UAE is the third-largest producer in OPEC, just
