UAE OPEC exit is not without precedence. Who could be next?

The United Arab Emirates’ shock decision to leave OPEC is reverberating across global energy markets, exposing fractures in the powerful oil cartel as production quotas risk prompting other members to follow suit.

The country’s decision follows weeks of missile and drone strikes by fellow OPEC member Iran, with the blockade of the Strait of Hormuz disrupting its exports, putting pressure on the backbone of its economy.

“The UAE exit is another chapter in the changing membership of the group,” said Andy Lipow, president of Lipow Oil Associates. “If countries that are abiding by their quota get disgusted with those that don’t, we could see additional exits that could eventually make OPEC irrelevant as a cartel,” he told CNBC via email.

Countries, including Qatar, Ecuador and Angola have left the group in past years, citing frustration with quotas or shifting national priorities. Angola left in 2024, while Qatar terminated its membership in 2019.

The cartel has long grappled with uneven compliance, with some members historically exceeding their production quotas, including Iraq and Kazakhstan.

“While the UAE has left OPEC, they were not the first and may not be the last,” Lipow added.

At the heart of the UAE’s decision lies a familiar tension: members that have invested heavily in boosting production capacity are increasingly reluctant to be constrained by quotas designed to support prices.

The country pumped about 2.37 million barrels per day in March, compared with its sustainable capacity of roughly 4.3 million bpd, according to latest IEA data.

‘Flight risks’

Analysts pointed to several potential “flight risk” countries, chafing at OPEC+ restrictions, that could consider giving up their memberships.

Matt Smith, lead oil analyst at Kpler, flagged Kazakhstan as a key candidate, noting its persistent overproduction. “Kazakhstan has been vastly over producing last year, and so they may be seeing this as a potential out for them to leave the group as well,” Smith said, adding that Nigeria could also be one to watch out for.

Nigeria, Africa’s largest crude oil producer, has increasingly prioritized domestic refining, particularly through the Dangote refinery, reducing its reliance on export markets and potentially weakening its incentive to remain bound by quotas.

Smith explained that the ramp-up of the Dangote refinery means it can process more oil at home and capture higher-value fuel margins. That reduces its reliance on OPEC’s strategy of supporting crude prices through supply curbs and instead increases its focus on maximizing volumes and downstream returns.

“Nigeria is in a similar position about not wanting to be hamstrung: it is a potential flight risk because it is becoming more self-sufficient,” Smith noted. “By redirecting its domestic crude…