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UAE’s exit from OPEC potentially good news for Asian countries — expert

The UAE is currently producing 3.4 mln barrels a day under the OPEC quota-capped membership

HONG KONG, April 29. /TASS/. Asian economies dependent on oil imports will benefit from the United Arab Emirates’ exit from OPEC, although the ongoing closure of the Strait of Hormuz may not bring a quick decline in energy prices, said Rystad Energy’s Middle East senior vice-president Aditya Saraswat.

"The Strait of Hormuz closure is masking the immediate impact of this departure, but once the strait reopens, a UAE pumping freely towards 4.8 million barrels per day represents a real shift of 1 to 2 per cent of global demand," he was quoted as saying by the South China Morning Post (SCMP) newspaper.

For Asian countries such as Japan, India and South Korea, which are heavily dependent on energy imports, "that’s structurally good news on prices long-term, even if the near-term picture is painful with Asian refineries already cutting runs sharply," Saraswat said.

The UAE is currently producing 3.4 mln barrels a day under the OPEC quota-capped membership, according to SCMP. With proven reserves exceeding 100 bln barrels, the UAE, the world’s sixth-largest oil producer, is expanding capacity towards 5 mln barrels per day, according to the publication.

Earlier, the Emirati state news agency WAM reported that the UAE had decided to withdraw from OPEC and OPEC+ effective May 1, 2026. The country assured though that it shares the desire to stabilize the global fuel market. Its oil production policy will take into account global supply and demand, according to the WAM publication.