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OPEC·Energy·Trade & Economy

UAE exits OPEC to chart independent energy course with major implications for Asia

Friday, 8 May 2026, 07:37 · 1 min read

The United Arab Emirates formally withdrew from OPEC and the OPEC+ production alliance on May 1, citing national interest and a strategic shift toward unconstrained output growth. The move follows years of tension over production quotas that kept UAE output roughly 30 percent below its actual capacity, costing Abu Dhabi billions in foregone revenue as its state oil company, ADNOC (Abu Dhabi National Oil Company), expanded toward a target of 5 million barrels per day by 2027. The exit is being compared in ambition to the UAE's 2020 Abraham Accords, signalling that Abu Dhabi increasingly prioritises direct bilateral relationships over multilateral frameworks — a posture with significant consequences for Asia's top crude importers, including China, India, Japan, and South Korea, who can now expect greater UAE supply volumes, more stable long-term contracts, and a strengthened role for the Murban crude benchmark in regional energy pricing.

Sources
The DiplomatThe UAE’s OPEC Exit: Why It Happened and What It Means for Asia ↗︎
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