UAE announced its exit from OPEC and OPEC+ effective May 1, signalling a shift toward unrestricted production capacity. The decision could accelerate the Gulf state's push to reach 5 million barrels per day by 2027, potentially reshaping global supply and Brent pricing. The move comes amid the Strait of Hormuz crisis, which has constrained shipping lanes and heightened supply disruptions. For years, the UAE has been working to boost its crude oil production capacity to 5 million barrels per day by 2027, often clashing with fellow OPEC producers over quotas. Barclays noted that the exit could assure investors that output quotas won't restrain the oil-production and economic recovery of the major Gulf producer once the war is over. The bank's analysts highlighted that the UAE's growing spare capacity could be fully deployed once the crisis subsides. Analysts at ING said, "The UAE's exit from OPEC is a big blow to the group, though it will have little impact on the market in the short term amid ongoing supply disruptions." They added, "In the medium to longer term, it means more supply for the market. This suggests that the Brent forward curve should move into deeper backwardation." Meanwhile, Energy Aspects founder Amrita Sen told CNBC that the exit does not change OPEC's ability to influence oil prices, but that Gulf producers will likely ramp up output once the Strait of Hormuz is navigable. ANZ bank analysts noted that the UAE and other producers will still depend on the Strait's status to turn capacity into exports. With the crisis expected to resolve, the UAE's accelerated production could add significant supply, potentially easing inventory drawdowns and supporting a deeper backwardation in Brent futures. The market will watch closely how quickly the Gulf state can translate its spare capacity into exports once shipping lanes reopen.