ABU DHABI: The Abu Dhabi National Oil Company on Sunday pledged to spend $55 billion on new projects over the next two years, just days after the United Arab Emirates&#39; officially left the OPEC. The move to ditch OPEC and the expanded OPEC+ group will allow the UAE to produce as much or as little crude as at wishes after decades of following a quota system instituted by the group, potentially providing a windfall of cash to the country. &quot;ADNOC today confirmed it is accelerating growth and delivery of its strategy with AED 200 billion ($55 billion) in new project awards for 2026-2028,&quot; read a statement released by the company. The move comes as the Gulf has been rattled by the US and Israel&#39;s war with Iran. Abu Dhabi aims to expand its production capacity to five million barrels a day by 2027. &quot;The planned project awards span ADNOC&#39;s upstream and downstream operations and usher in a new phase of project delivery that will supercharge UAE&#39;s manufacturing capacity, strengthen industrial resilience, deepen the impact of the company&#39;s&quot; plans to boost spending and production in the UAE, ADNOC added. The UAE has been an OPEC member through the emirate of Abu Dhabi since 1967, four years before the former British protectorate became an independent country. It officially left the group on May 1. As ADNOC announced the new lavish spending plans, the seven OPEC+ members announced a hike in oil-production quotas during their first meeting since the UAE&#39;s departure.

Business

The move to ditch OPEC and the expanded OPEC+ group will allow the UAE to produce as much or as little crude as at wishes after decades of following a quota system instituted by the group, potentially providing a windfall of cash to the country.

UAE oil giant ADNOC pledges $55B in new projects by 2028: Statement

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ISLAMABAD: UAE&rsquo;s OPEC exit ends a 58-year membership and challenges the group&rsquo;s unity, founded in 1960 to counter Western oil giants, OPEC later expanded into OPEC+ but now faces weaker control over supply and prices. On April 28, the UAE announced it would withdraw from both OPEC and OPEC+, effective May 1, ending its 58-year membership. Analysts say the move reflects Abu Dhabi&#39;s frustration with production quotas it felt were holding it back. Before the exit, the UAE contributed roughly 15% of total OPEC+ output. Experts cited by ABC News say it could now aim to increase production to 5 million barrels per day by 2027, up from its former quota of 3.4 million barrels per day. OPEC: The beginningBefore OPEC existed, global oil was controlled by the &quot;Seven Sisters&quot; &mdash; major Western companies including Exxon, Shell, BP, and Chevron&#39;s predecessors.&nbsp; They dominated production, pricing, and distribution, leaving oil-producing nations with little say over their own resources. In 1960, five countries; Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela founded the Organization of the Petroleum Exporting Countries in Baghdad to take back control over output, prices, and revenues. The UAE joined in 1967.&nbsp; Over the following decades, OPEC grew into a central force in global energy markets, especially after the oil shocks of the 1970s. Its influence gradually weakened, however, as the US, Russia, and others increased their own output.&nbsp; To compensate, OPEC formed the broader OPEC+ alliance with non-OPEC producers, most notably Russia, to better manage global supply. This cooperation helped the group enforce production cuts and stabilize prices.&nbsp; Today, OPEC has 12 members, with OPEC+ playing an increasingly important role alongside it. What the UAE departure meansThe departure carries real risks for OPEC.&nbsp; It could affect Saudi Arabia&#39;s leadership within the group and erode the unity that keeps quota agreements in place.&nbsp; If other members follow suit or exceed their own limits, OPEC+ could find it harder to control supply and support prices. HSBC noted, however, that the near-term market impact may be limited, partly due to disruptions around the Strait of Hormuz.&nbsp; In the longer term, though, a significant rise in UAE output could put downward pressure on prices: good news for consumers, but a challenge for OPEC&#39;s cohesion and influence.

UAE’s OPEC exit ends a 58-year membership and challenges the group’s unity, founded in 1960 to counter Western oil giants, OPEC later expanded into OPEC+ but now faces weaker control over supply and prices.

UAE exits OPEC, signaling a new era for oil politics

DUBAI: The United Arab Emirates will withdraw from the OPEC and OPEC+ oil cartels to focus on &quot;national interests&quot;, a statement said on Tuesday, a bombshell announcement as energy prices soar over the Middle East war.&nbsp;The UAE, one of the world&#39;s top oil producers, which has previously baulked at OPEC production quotas, will pull out on Friday, a statement carried by the official WAM news agency said.&nbsp;&quot;This decision reflects the UAE&#39;s long-term strategic and economic vision and evolving energy profile,&quot; the statement said.&nbsp;&quot;During our time in the organization, we made significant contributions and even greater sacrifices for the benefit of all.&nbsp;&quot;However, the time has come to focus our efforts on what our national interest dictates.&quot;&nbsp;Gulf oil shipments are currently being strangled by Iran&#39;s blockade of the Strait of Hormuz, which flows past the UAE and normally carries one-fifth of the world&#39;s oil.

Middle East

The UAE announced it will leave OPEC and OPEC+, citing national interests and long-term strategy, as Gulf oil shipments face disruption from Iran’s blockade of the Strait of Hormuz.

UAE to withdraw from OPEC, OPEC+: statement

<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ISLAMABAD:&nbsp;<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Global oil prices fell to a two-week low on Thursday after an unexpected build in U.S. crude inventories and growing speculation that OPEC+ may raise output in their meeting on Sunday. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Eight core members, often referred to as the &lsquo;Voluntary Eight&rsquo; (V8), are now weighing an output increase starting in October. The group includes Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman.&nbsp;<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A final decision is expected at the <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><a href="https://www.pakistantv.com/article/opec-meets-with-future-oil-production-hanging-in-the-balance" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">OPEC+ meeting</a><span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> on Sunday. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This comes after their earlier cut production by 2.2 million barrels per day (bpd), with the United Arab Emirates reducing a further 300,000 bpd to stabilize the market. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">According to the U.S. Energy Information Administration (EIA) crude oil stockpiles rose by 2.4 million barrels last week, which was unprecedented for analysts who were expecting a 2.0 million barrel draw.&nbsp; <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The American Petroleum Institute (API) also reported an increase, but only by 0.6 million barrels. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Brent crude for October delivery closed at $68.12 a barrel on Friday, down 50 cents or 0.73%. The November contract, which is now the main one traders follow, slipped 53 cents or 0.78% to end the day at $67.45, as reported by Reuters.&nbsp;<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Eight core members are now considering an output increase in October, Reuters reported, with a final decision expected at the alliance&rsquo;s Sunday meeting. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Such a move would represent a shift from their strategy adopted in April. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Analysts say the decision to increase quotas was aimed at regaining market share, following diplomatic pressure from United States President Donald Trump to reduce energy prices. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Back in January, Trump pushed for <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><a href="https://www.pakistantv.com/article/oil-plunges-after-trumps-iran-comments-asian-markets-mixed" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">oil price reductions</a><span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> during the annual World Economic Forum in Davos, Switzerland. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Past Comments&nbsp;<span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">US President Donald Trump called on Saudi Arabia and OPEC to reduce oil prices during the annual World Economic Forum in Davos.&nbsp; <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Speaking to global leaders and business executives, Trump said he would formally request the oil-producing alliance to take action on energy costs. <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&quot;I&#39;m also going to ask Saudi Arabia and OPEC to bring down the cost of oil,&quot; Trump announced during the session. He added, &quot;You&#39;ve got to bring down the oil price, you&#39;ve got to end that war. They should have done it long ago; they&#39;re very responsible, actually, to a certain extent, for what&#39;s taken place.&quot; <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Trump&rsquo;s comments come amid rising geopolitical tensions and ongoing efforts by the United States to curb Russian oil exports.&nbsp; <span style="font-size: 18px; font-family: Arial, Helvetica, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">His administration has recently imposed tariffs on countries like India for purchasing Russian crude and urged European allies to reduce energy ties with Moscow.

TOKYO: A man walks past an electronic quotation board displaying numbers of the Nikkei Stock Average (R) on the Tokyo Stock Exchange in Tokyo on January 13, 2026. (File Photo by AFP/Kazuhiro Nogi)

OPEC+ is likely to raise output in October, with Saudi Arabia, Russia, and others weighing a shift from earlier cuts; oil fell as US inventories rose ahead of Sunday's meeting.

Articles tagged with "OPEC"

UAE oil giant ADNOC pledges $55B in new projects by 2028: Statement

UAE exits OPEC, signaling a new era for oil politics

UAE to withdraw from OPEC, OPEC+: statement

OPEC+ expected to raise production levels in major strategic shift