The United Arab Emirates has decided to leave the Organization of the Petroleum Exporting Countries (OPEC) following what Energy and Infrastructure Minister Suhail Mohamed Al Mazrouei described as a “careful and long review” of national policy and strategy.
Speaking to CNBC’s Dan Murphy earlier today, Al Mazrouei said the move is indicative of the country’s ambitions as both a domestic producer and an international investor. He said the UAE is pursuing opportunities beyond its borders and requires the ability to respond independently to market conditions.
“The decision to be outside any constraint is something that is important for us,” he said.
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The minister pointed to what he described as a global supply shortfall, noting that current output is insufficient to meet demand without drawing on strategic reserves. He explained that timing was a key factor in the decision, stressing that the UAE sought to avoid disrupting prices or affecting other producers.
Al Mazrouei was clear to state that the move is not directed at OPEC or its leadership.
“This has nothing to do with any of our brothers or friends within the group,” he said.
He added that the UAE continues to respect the organization and its role in balancing supply and demand. The minister also cited the country’s production growth plans, including a target to reach five million barrels per day in capacity by 2027.
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According to the Minister, operating outside OPEC would allow the UAE to manage its output and broader energy portfolio, which includes gas and petrochemicals, in line with national priorities.
The decision comes amid disruptions in global oil flows linked to the closure of the Strait of Hormuz, a key shipping route for crude and refined products. Al Mazrouei noted that the UAE is not increasing production in the immediate term due to these constraints.
“The impact of closing the Strait of Hormuz is something that every human on the planet will feel,” he said. He said producers must consider consumer needs as prices rise due to supply disruptions.
“We need to be on the side of the consumer and ensure that we do what we can to help the world economy. This is not a decision to raise the production. Our philosophy as a producer will not change,” he said.
The UAE has been a member of OPEC for nearly 60 years, starting as the Emirate of Abu Dhabi in 1967 and continuing as a nation after its formation in 1971. The country was often ranked as the third-largest producer in OPEC.
