Is OPEC+ projecting calm after the UAE exit? Energy Watch
Oil & Gas

Is OPEC+ projecting calm after the UAE exit?

Is OPEC+ signaling business as usual after the UAE exit? The seven producers kept June’s hike at 188,000 bpd and stayed silent on the split

Shalini Sharma

New Delhi: Is the Organisation of the Petroleum Exporting Countries (OPEC) going out of its way to signal that nothing has changed after the United Arab Emirates’ (UAE) exit? Its May 3 statement reads like business as usual even as the group absorbs a rare internal rupture. That contrast — between an unchanged policy script and a shifting internal equation — runs through the decision, shaping both what OPEC chose to say and, just as notably, what it left unsaid.

On May 3, OPEC's seven participating countries — Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman — met virtually and decided to implement a production adjustment of 188,000 barrels per day for June 2026. The group said the move reflected its “collective commitment to support oil market stability” and its intent to retain “full flexibility to increase, pause or reverse” the phase-out of voluntary cuts. It also said the seven countries would meet again on June 7.

The missing name in the statement

The more striking part of the announcement is what it did not say. OPEC’s statement made no mention of the UAE, which exited the oil cartel on May 1. That silence matters because the UAE had been one of the key members in monthly production decisions. Before its exit, the UAE was part of the small group that actually drove those monthly adjustments, alongside Saudi Arabia and the other core producers.

Analysts say that omission is not accidental. Rystad Energy’s Jorge Leon said the group is “acting as if nothing has happened,” adding that by sticking to the same production path — just without the UAE — OPEC is “deliberately downplaying internal fractures and projecting stability.”

Paper barrels versus physical barrels

On paper, 188,000 bpd sounds like a meaningful addition. In practice, the market backdrop suggests a far smaller effect. The war-linked closure of the Strait of Hormuz has throttled exports from Saudi Arabia, Iraq, Kuwait and the UAE, while total OPEC+ output averaged 35.06 million bpd in March, 7.70 million bpd below the reported figures for February. The June increase was expected to look similar to the previous month’s move, minus the UAE share.

Leon described the move as sending “a two-layer message” — that the UAE’s exit will not disrupt OPEC’s functioning, and that the group still exerts control over global markets.

“While output is increasing on paper, the real impact on physical supply remains very limited given the Strait of Hormuz constraints,” he said. “This is less about adding barrels and more about signalling that OPEC still calls the shots.”

Stability as messaging, not just policy

That gap between announced supply and actual flows is central to how the latest decision is being interpreted. Priya Walia, another analyst at Rystad Energy, noted ahead of the meeting that OPEC output had already fallen significantly below quota due to war-related disruptions rather than voluntary restraint.

Against that backdrop, the June increase looks less like a supply intervention and more like a communication strategy.

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Projecting control in a fractured landscape

OPEC’s latest move, then, operates on two levels. Formally, it is a routine monthly adjustment — consistent, measured and framed around stability. But in context, it is also an attempt to project control at a time of internal change and external disruption. By holding its line — and holding its silence — OPEC appears to be answering the question it did not explicitly address: that despite the UAE’s exit, it intends to carry on as if nothing has changed. However, whether the market buys the messaging or not remains to be seen.

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