The United Arab Emirates (UAE) is set to exit Opec and Opec+ after nearly 60 years, citing its "long-term strategic and economic vision and evolving energy profile." This move is viewed as a significant blow to the oil cartel. The UAE's energy minister stated that leaving the groups will offer greater flexibility. Having joined Opec in 1967, the UAE's departure will reduce the cartel to 11 members.
Saul Kavonic, head of energy research at MST Financial, commented that this marks "the beginning of the end of Opec." The UAE's exit means Opec loses approximately 15% of its production capacity and one of its most compliant members. The UAE produces 2.9 million barrels of oil annually. Analysts suggest Saudi Arabia, the de facto leader, will face increased pressure to manage the remaining members and market stability independently, potentially leading other nations to consider similar exits. This fundamental geopolitical shift is expected to reshape the Middle East and global oil markets.