UAE Exit from OPEC: Causes, OPEC vs OPEC+ and Strait of Hormuz Crisis for UPSC
Context: UAE exit from OPEC
United Arab Emirates plans to exit OPEC / OPEC+ amid tensions around the Strait of Hormuz, indicating internal rifts and a shift toward independent oil policy.



What is OPEC?
- Founded: 1960
- Headquarters: Vienna
- Nature: Formal cartel controlling oil supply via quotas
Members (12)
Saudi Arabia, Iran, Iraq, Kuwait, UAE, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea, Republic of the Congo, Venezuela
Countries that left
Qatar (2019), Ecuador (2020), Angola (2023), Indonesia (suspended)
What is OPEC+?
- Formed: 2016
- Nature: OPEC + non-OPEC producers (informal alliance)
- Key member: Russia
Major members
Russia, Kazakhstan, Azerbaijan, Mexico, Oman, Bahrain, Brunei, Malaysia, South Sudan, Sudan
Why UAE is Exiting
- Production quotas restrict higher output
- Desire to maximise revenue in tight market
- Strategic autonomy from Saudi-led decisions
- Need for flexibility amid Iran–Hormuz tensions
- Dissatisfaction with internal coordination in OPEC







