OPEC was established in 1960 at the Baghdad Conference by five founding members — Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela — with the goal of coordinating oil production policies and stabilising global petroleum markets. At the time, Western oil companies dominated global supply and pricing, prompting producing nations to assert greater control over their natural resources.
Today, OPEC has expanded to 12 members and works alongside additional partners under the OPEC+ arrangement, which together influence a large share of global oil output. The alliance coordinates production quotas to manage supply and support price stability in international markets.
The UAE’s decision to exit the organisation, effective May 1, reflects a strategic shift toward independent production policy and greater flexibility in managing output. Officials in Abu Dhabi have cited long-term national economic interests and evolving energy market conditions as key reasons for the move.
Analysts note that the withdrawal could weaken OPEC’s ability to regulate supply collectively, especially given the UAE’s status as a major producer with significant spare capacity. It also comes at a time of heightened volatility in global energy markets due to geopolitical tensions and disruptions in key shipping routes such as the Strait of Hormuz.
While OPEC was originally designed to protect producer interests and stabilise prices, the UAE’s exit signals growing divergence within the group over production limits, market strategy, and national priorities.
