The United Arab Emirates announced its exit from OPEC and OPEC+ effective May 1, ending a membership that began in 1967, a move that signals a shift toward greater production flexibility amid global supply tightness. The decision follows a period of heightened supply disruptions, including limited tanker traffic through the Strait of Hormuz, and a global market that the UAE says is underserved by current output levels. Abu Dhabi National Oil Company has set a target of 5 million barrels per day by 2027, up from its current 3.4 million. Under the OPEC+ agreement it has been capped at roughly 3.2 million barrels per day, while its capacity sits above 4 million. In March, the U.S. Energy Information Administration reported that Iraq, Saudi Arabia, Kuwait, the UAE, Qatar and Bahrain shut in 7.5 million barrels per day, rising to 9.1 million in April. Brent crude surged to $111 a barrel after the announcement. The government statement said the UAE's long-term strategic and economic vision and evolving energy profile guided the move, noting that "underlying trends point to sustained growth in global energy demand over the medium to long term." It added that the exit would allow the country to bring additional production to market "in a gradual and measured manner, aligned with demand and market conditions." The statement also emphasized that "the time has come to focus our efforts on what our national interest dictates and our commitment to our investors, customers, partners and global energy markets." Looking ahead, the UAE's departure is expected to increase its output flexibility, potentially easing supply constraints and supporting price stability. The country's continued investment in oil, gas, renewables and low-carbon technologies positions it to adapt to evolving market dynamics while maintaining its role as a key energy supplier.