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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.

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PYQ CSE – 2009, Ans – C
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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

  1. Production quotas restrict higher output
  2. Desire to maximise revenue in tight market
  3. Strategic autonomy from Saudi-led decisions
  4. Need for flexibility amid Iran–Hormuz tensions
  5. Dissatisfaction with internal coordination in OPEC
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UAE Exit from OPEC: Causes, OPEC vs OPEC+ and Strait of Hormuz Crisis for UPSC

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