How OPEC was formed: key stages and solutions

The United Arab Emirates (UAE) announced its withdrawal from OPEC and OPEC+ on May 1. The authorities plan to independently determine the energy strategy. All the details are in the Izvestia article.

The history of OPEC's creation

The Organization of Petroleum Exporting Countries was founded in 1960 on the initiative of Iran, Iraq, Saudi Arabia, Kuwait and Venezuela. Over the decades of its existence, the membership of the association has changed several times. Currently, the structure includes 12 states that control about 40% of global oil production and possess significant hydrocarbon reserves.

The OPEC+ format, which includes Russia along with the cartel members, was created later to expand coordination in the global market. Changes in the composition of such associations are often related to the internal economic interests of countries. According to the charter of the organization, the withdrawal of a participant takes effect at the beginning of the next calendar year after fulfilling all financial obligations.

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Precedents for the withdrawal of countries from OPEC

Previously, several States had already terminated their membership in the organization. For example, Qatar left OPEC in 2019, focusing on natural gas production. Ecuador finally withdrew from the association in 2020 due to economic problems, and Angola made a similar decision in January 2024, disagreeing with the established quotas for the extraction of raw materials.

Indonesia has suspended its participation twice due to disagreements and a change in the status of the exporter. According to experts, such precedents emphasize the difficulty of coordinating the interests of various players. Gabon also temporarily left the organization in 1995, but regained membership two decades later.

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The decision of the UAE authorities

The country's Minister of Energy and Infrastructure, Suheil al-Mazroui, said that the withdrawal of the United Arab Emirates from OPEC and OPEC+ organizations would have a minimal impact on world oil prices. According to the minister, the decision was made at the most appropriate moment, taking into account the current market situation.

"This will have a minimal impact on [oil] prices and on our friends from OPEC and OPEC+," he said.

The UAE accounted for 11.9% of the cartel's total production until the beginning of 2026. The country has repeatedly expressed disagreement with, in its opinion, underestimated quotas, which eventually led to the first time in the history of OPEC that such a large Middle Eastern exporter had left.