Stories from UAE

The United Arab Emirates intends to maintain a responsible position within energy markets.

The United Arab Emirates is pursuing a political and diplomatic offensive against Saudi Arabia. Kremlin spokesperson Dmitry Peskov stated that UAE authorities did not warn Russian leadership of the decision to exit. Peskov suggested the UAE is unlikely to implement aggressive production policies to avoid causing oil price volatility. Markets are currently pricing in a prolonged blockage of the Strait of Hormuz. The UAE plans to increase crude oil production in opposition to Saudi Arabia's policies. This move follows recent discussions regarding the group's production and membership. The withdrawal will be effective starting this Friday, May 1. This move is described as a blow to the major oil producers' alliance and a sign of deeper divisions within the group. Tensions between the two Gulf rivals have escalated over issues regarding Yemen and Iran.

damage to oil facilities and fields caused by the ongoing war will make it challenging for countries to increase production quickly. The country's relationship with the organization dates back to 1967 when Abu Dhabi joined the alliance before the state's formation in 1971. This shift occurs despite increased market uncertainty. The UAE has reached the position of third largest producer in OPEC, navigating production quota variations and geopolitical shifts within the OPEC+ framework. This capacity exceeds its current OPEC quota of 3.4 million barrels per day, though actual production has reached 3.5 million barrels per day. This approach aims to secure higher prices than those expected in a global decarbonization scenario 10 to 20 years from now. The move is framed as a response to the ongoing global decarbonization trend.

HSBC reported that a potential UAE exit from OPEC+ could have limited short-term impact on oil markets but may weaken long-term supply discipline and price management. The BBC reported that the President of the United States faces diplomatic work following these proposals.

Influential voices in the United Arab Emirates have publicly expressed feeling abandoned following a lack of unified international response to recent attacks. The UAE has reportedly endured approximately 3,000 attacks from Iran.

The United States is targeting third parties regarding tolls in the Strait of Hormuz. Calculations suggest a toll of $1 per barrel would be applied to large tankers. Based on pre-war traffic of over 100 ships per day, this could generate transit funds.

The Dubai Department of Economy and Tourism temporarily suspended a portion of the GTCFX office on April 22, 2026. The suspension was part of an administrative action.

Major data center developer Pure DC has paused investment decisions on all regional data center opportunities in the Middle East.

The UAE has announced a decision to exit OPEC and OPEC Plus. The decision may open new avenues for cooperation in clean energy and joint investments outside traditional frameworks. Analysts suggest this could make maintaining oil transport unity more difficult. Crude oil reference prices for Colombia reached 115 dollars, the highest level since 2022. The UAE said its decision-making dynamism and economic independence, stating it will not be bound by specific alliances or organizational decisions. Brent crude prices are trading around 114 US dollars amid market pressure following the announcement of the UAE leaving OPEC. Tensions in the Middle East continue to contribute to market losses. International oil prices rose nearly 3 percent due to shipping disruption risks in the Strait of Hormuz.

A blockade of the Mandeb Strait and the Gulf of Hormuz could drive oil prices higher and increase global inflation pressures. Iran is reportedly reusing an old supertanker as a floating barge to bypass oil transport congestion.