Analysts Weigh Impact on Oil Supply as UAE Leaves OPEC

Abu Dhabi’s move could loosen quota discipline, accelerate direct oil deals, and put pressure on prices once Hormuz risks ease, experts say.

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria, March 3, 2022. Lisa Leutner/AP Photo

The United Arab Emirates (UAE) has walked away from OPEC, removing one of the Gulf’s most important producers from a quota system dominated by countries in the Arabian Peninsula, especially Saudi Arabia.

The UAE announced on April 28 that it would exit OPEC and the wider OPEC+ alliance, effective May 1.