UAE Ditches OPEC After 60 Years, Blowing Up the Oil Cartel

**UAE Ditches OPEC After 60 Years, Blowing Up the Oil Cartel** The United Arab Emirates announced it is leaving the Organization of the Petroleum Exporting Countries (OPEC) on May 1, dealing a massive blow to the cartel’s ability to control global oil prices. The move, which ends six decades of membership, comes as the Iran war jolts energy markets and reshapes power in the Gulf [1][2][3]. Analysts say the exit could crack the group’s united front and increase price volatility [1][4]. The UAE is one of the world’s top oil producers. Its departure signals a rare public rift within OPEC, which coordinates production policies to influence fuel prices [1][2]. The decision reflects a shift in the UAE’s long-term energy strategy and a prioritization of its own economic goals over collective output targets [4]. The exit also hits Russia’s oil strategy hard. Moscow had relied on OPEC’s price floor to prop up its revenue. With the UAE gone, that floor cracks, and Russia now faces a sharp drop in oil income—weakening its war budget amid the ongoing conflict with Iran [3]. The move sends shockwaves through global markets already rattled by supply disruptions in the Strait of Hormuz [2]. Oil companies are raking in massive profits from higher fuel prices, and climate groups are demanding a windfall tax on what they call excessive fossil fuel earnings [5]. Sources: UAE Quits OPEC, Shaking Oil Markets and Strategic Tensions UAE Quits OPEC, Sends Shockwaves Through Global Oil Markets UAE Quits OPEC in Blow to Saudi Arabia, Iran War Shocks Oil Markets UAE Quits OPEC After 60 Years, Russia’s Oil Income Hit Middle East crisis could cost global economy $1tn as oil firms rake in ‘obscene’ profits