The United Arab Emirates officially announced its withdrawal from OPEC and termination of participation in the OPEC+ agreement on May 1. Professor Sheng Li, Vice President of the China-SCO Trade and Economic Institute, spoke about the prerequisites for this step and its impact on the architecture of the global energy market in an exclusive interview with Kazinform’s own correspondent in Beijing.
According to the expert, Abu Dhabi’s decision is a fundamental shift in the resource management paradigm. This marks a transition from a policy of collective containment of production to a strategy of national flexibility in managing production capacity.
— This step reflects the accumulated contradictions in the issue of quota distribution. The UAE strives to fully realize the potential of its expanded production capabilities, without limiting economic growth by external limits, Sheng Li emphasized.
The professor believes that the exit of one of the key players will not cause immediate destabilization of the markets, but will create a precedent for the stability of the OPEC+ format.
“From a geopolitical perspective, this signals a subtle reconfiguration of dynamics in the Gulf, particularly with Saudi Arabia, and highlights the growing economic assertiveness of the Middle Powers,” he added.
In a broader context, he said, the situation exposes deep structural tensions in the global energy sector. Manufacturers today are forced to balance between maximizing profits in the short term and the uncertainty caused by the global energy transition.
— The UAE’s exit will not lead to the immediate collapse of OPEC+, but will become a powerful catalyst for market transformation. The world is moving from an era of tight, coordinated control to a period of competitive national strategies, where each manufacturer will fight for its market share in a changing demand structure, he concluded.
Previously reportedthat the UAE is leaving OPEC and OPEC+.
