UAE walks away from OPEC to boost oil output

The United Arab Emirates has decided to leave OPEC, the global oil producers' club, but insists money—not politics—drove the move. The country now plans to raise its oil production from about 3 to 3. 5 million barrels per day up to 5 million by next year. Officials say the choice was made after checking how much oil the UAE could realistically pump and what’s best for its economy. OPEC sets limits on how much oil members can produce. With the quota gone, Abu Dhabi wants to pump more oil and earn more cash. But the exit weakens OPEC’s power, especially since the UAE was its third-biggest producer after Saudi Arabia and Iraq. The alliance now faces a smaller group of countries controlling world oil supplies.Meanwhile, oil shipments through the Strait of Hormuz, a busy waterway near the UAE, remain risky due to regional tensions. Because of this danger, OPEC recently lowered its forecast for future oil demand growth. It now expects demand to rise by about 1. 17 million barrels a day in 2026, down from an earlier guess of 1. 38 million. The group is slightly more hopeful for 2027, predicting growth of 1. 54 million barrels daily. Even with weaker demand predictions, OPEC+—which includes non-OPEC countries like Russia—still plans a small production boost of 188, 000 barrels per day in June. This decision stands despite ongoing conflicts that threaten oil supplies. Since the war began, OPEC’s output has fallen by nearly 9. 7 million barrels per day—a drop of over 30%. The UAE’s exit adds another challenge to the group’s efforts to manage global oil markets.