-- (Updates with official statements and analyst comments throughout the story.)
The UAE will withdraw from the Organization of the Petroleum Exporting Countries and its allies effective May 1, the country's Energy Minister Suhail Al Mazrouei confirmed on social media Tuesday.
"The UAE's decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals," Al Mazrouei posted on X.
The energy minister told Reuters earlier that the government did not consult any other country before deciding to leave the cartel. He said this decision will give the UAE the flexibility to make changes to production, storage, and shipping energy products.
Sultan Al Jaber, head of the Abu Dhabi National Oil Company, said the UAE's decision was in line with its long-term energy strategy, production capacity, and national interests, while also taking into account global energy market stability.
"At ADNOC, our focus is unchanged: meeting the growing energy needs of our customers and partners around the world with reliability, responsibility, and the ambition to deliver more... across oil, gas, chemicals, and low carbon and renewable energy," he said in a post on X on Tuesday.
The UAE joined OPEC in 1967, and as a producer of significant volumes, its membership of the group carried weight in its setting of production targets and ultimately global prices.
One analyst noted that the veteran member is likely seeking freedom from output limitations to strongly raise output.
OPEC is heavily influential over global oil prices through its monthly meeting, where many of the world's largest producers agree on production levels for the weeks ahead.
Sparta energy analyst Phil Crosby said in written comments tothat the country's exit was not entirely surprising and had been "on the cards" for some time.
"They'll want to produce closer to what their capacity is longer term, which will put some pressure on oil, but having already lost 1 billion barrels of supply from the war, this won't be a huge headache for a while," Crosby said.
He added that they can probably sustainably produce 4.5-4.8 million barrels per day once Hormuz opens, noting that the country was allowed 3.4 mmb/d under OPEC quotas.
has reached out to other OPEC members.