The UAE is the fourth-largest producer in the Organisation of the Petroleum Exporting Countries and said it would quit the ‌group on Tuesday after nearly 60 years as a member.

That will free Abu Dhabi from the oil production targets imposed by OPEC and its allies to balance supply and demand.

The UAE’s exit came as a shock, said five OPEC+ sources, who asked not to be named as they are not allowed to speak to the press.

The exit would complicate OPEC+’s efforts to balance the market through adjustments to supply because the group would have control over less of global production, four of the five sources said.

The UAE will become the largest oil producer to depart ​OPEC, a heavy blow to the organisation and its main member, Saudi Arabia.

Abu Dhabi pumped around 3.4 million barrels per day (bpd) or about 3% of the world’s crude supply before the US-Israeli war on Iran ​forced it and other Middle East Gulf producers to curb shipments and shut down some production.

OPEC and the Saudi government’s communication office did not immediately reply to a request for ⁠comment.

Once outside OPEC, the UAE will join the ranks of independent oil producers that pump at will, such as the United States and Brazil.

For now, there is not much the UAE can do to increase production or exports due to ​the effective closure of shipping through the Strait of Hormuz.

If and when shipping recovers to pre-war levels, the UAE could increase output to the country’s capacity of 5 million bpd of crude oil and liquids.

There has been tension between the ​UAE and Saudi Arabia over the Emiratis’ production quota, which stands at 3.5 million bpd.

The UAE has asked for a bigger quota to reflect the fact that it has expanded capacity as part of a $150 billion investment programme.

“For years, Abu Dhabi has been looking to monetise its investment in expanding capacity,” said Helima Croft from RBC Capital Markets.

The US-Israeli war on Iran would, however, slow those plans down after drones and rockets damaged the UAE’s production facilities, she said.

The war has resulted in the biggest-ever global energy supply disruption in terms of outright ​daily oil production, according to the International Energy Agency.

The conflict has also exposed discord among Gulf nations, including between the UAE and Saudi Arabia.

Rumours of the UAE’s exit from OPEC+ have circulated for years amid worsening relations with Riyadh ​over conflicts in Sudan, Somalia and Yemen.

The UAE has also grown increasingly close to the United States and Israel.

Iraq stays in

The UAE is the fourth producer to quit OPEC+ in recent years, and by far the biggest.

Angola quit the bloc in 2024, citing ‌disagreements over production ⁠levels. Ecuador quit OPEC in 2020 and Qatar in 2019.

Iraq, the third-largest producer in OPEC+ after Saudi Arabia and Russia, has no plan to leave OPEC+ as it wants stable and acceptable oil prices, two Iraqi oil officials said on Tuesday.

OPEC+ will not collapse as Saudi Arabia will still want to manage the market with the help of the group, said Gary Ross, a veteran OPEC watcher and CEO of Black Gold Investors.

“At the end of the day, Saudi Arabia was essentially OPEC — the only country with spare capacity,” said Ross.

Saudi Arabia can produce 12.5 million bpd, but has in recent years kept production under 10 million.

OPEC+ membership gives countries more diplomatic and international weight — one of the reasons cited by analysts behind Iran’s decision ​to stay in OPEC even at the peak of its ​fight with Gulf countries.

US President Donald Trump has accused ⁠OPEC of “ripping off the rest of the world” by inflating oil prices.

Trump has said the US may reconsider military support to the Gulf because of OPEC oil policies.

It was, however, Trump who helped convince OPEC+ to cut output in 2020 during the COVID pandemic as oil prices slumped and US producers suffered.

“The UAE withdrawal marks a significant shift for OPEC … the ​longer-term implication is a structurally weaker OPEC,” said Jorge Leon, a former OPEC official who now works at Rystad Energy.

OPEC+ members will be more focused on rebuilding facilities ​hit by the war rather than ⁠on embarking on production cuts in the near future, said Croft.

Hence, the broader OPEC+ breakup is not on the cards for now, she added.

Declining power

OPEC’s sway over the market has been declining for decades.

Formed in 1960, OPEC once controlled over 50% of global output.

As rivals’ production grew, the group’s share declined to around 30% of the world’s total oil and oil liquids output of 105 million barrels per day last year.

The United States, which used to rely on imports from OPEC members, has become its ⁠biggest rival over ​the past 15 years.

The US has raised production to as much as 20% of the world’s total on the back of its shale oil ​boom.

The US production spike prompted OPEC to team up in 2016 with several non-OPEC producers to form OPEC+, a group led by Russia — previously one of Saudi Arabia’s top rivals in the oil industry.

The alliance gave the group control over around 50% of the world’s total oil production in 2025, ​according to the International Energy Agency.

The loss of the UAE means it will decline to around 45%.

Ganga Expressway, the longest expressway so far in Uttar Pradesh, was inaugurated by Prime Minister Narendra Modi on Wednesday. The 594 kilometres long Ganga expressway is a six-lane expressway that aims to reduce the travel time between Meerut and Prayagraj to just 6 hours!Uttar Pradesh has over 60% of India’s total access-controlled expressway network. Recently, Chief Secretary Manoj Kumar pointed out that of the nearly 2,900 km of such highways across the country, close to 1,200 km are located in the state.Meerut District Magistrate and Collector Vijay Kumar Singh on Tuesday said the project has generated tremendous excitement among the public. He noted that the expressway will greatly enhance connectivity to Prayagraj as well as the state capital, Lucknow.Experts say the expressway’s length is particularly significant. According to the Department for Promotion of Industry and Internal Trade, road transport remains economically efficient for freight over distances of up to about 600 km, while rail becomes more viable beyond that point. At 594 km, the Ganga Expressway falls almost exactly within this crucial range for cargo movement.

How will the Ganga Expressway cut down travel time, what districts will it cover, what will be the toll policy, and what cost has it been constructed at? We take a look:

Ganga Expressway: Top Points About UP’s Longest Expressway

Travel time: One of its most noticeable benefits will be the sharp reduction in travel time. The trip between Meerut and Prayagraj, which currently takes around 10 to 12 hours, is likely to be cut to approximately 6 to 7 hours. Access from Delhi: For travellers from the Delhi-NCR region, access will be seamless through the Delhi-Meerut Expressway, followed by a short connecting link at Bijoli to join the Ganga Expressway.

Construction cost: Developed at an estimated cost of Rs 36,230 crore, the Ganga Expressway ranks among Uttar Pradesh’s most ambitious infrastructure initiatives. The Ganga Expressway stretches from Bijoli village in Meerut to Judapur Dandu village in Prayagraj.Speed limit: The expressway has been built for speeds of up to 120 kmph. The six-lane access-controlled expressway, has been designed with the provision for expansion to eight lanes.

Route & Districts covered: The expressway will pass through 12 districts: Meerut, Hapur, Bulandshahr, Amroha, Sambhal, Badaun, Shahjahanpur, Hardoi, Unnao, Rae Bareli, Pratapgarh and Prayagraj. In doing so, it will directly influence more than 500 villages along its alignment.Interchanges & amenities: Its connectivity is further strengthened by 21 interchanges that link the corridor with existing national highways and state roads.

The project also includes major river crossings, notably a 960-metre bridge over the Ganga and a 720-metre bridge across its tributary, the Ramganga. Both structures have been engineered to suit local flood conditions.To support travellers, the expressway will also feature nine public utility complexes equipped with fuel stations, rest areas and food courts.

Emergency Landing Strip: One of the expressway’s standout features is a 3.5-km emergency landing strip in Shahjahanpur district. Already tested by the Indian Air Force, this airstrip adds a strategic defence dimension to the project, enhancing national preparedness in addition to its economic significance, according to an official statement.Integration with other expressways: Ganga Expressway will eventually be integrated with existing and even upcoming corridors. These include the Agra-Lucknow Expressway, the Farrukhabad Link Expressway, the Jewar Link Expressway, and a proposed extension that will connect Meerut to Haridwar.According to reports, plans are underway to extend the expressway by around 146 kms up to Haridwar. This extension will pass through Amroha and Bijnor and cover more than 200 villages.

Toll: The project will be operated under a toll-based public-private partnership model. Adani Enterprises and IRB Infrastructure Developers have been awarded concession rights for a period of 30 years.For toll collection, two primary toll plazas will be set up at the main entry points in Meerut and Prayagraj. The final toll charges have not yet been announced, however officials have indicated that they are likely to be in line with other expressways in Uttar Pradesh. At present, four-wheelers pay around Rs 2 to Rs 3 per kilometre.

Stocks mostly advanced in Asia on Wednesday despite losses on Wall Street, while oil prices fell after the United Arab Emirates said it would leave Organisation of the Petroleum Exporting Countries (OPEC) in a blow to the powerful oil cartel.

US futures edged higher. Markets in Japan were closed for a holiday.

Elsewhere in Asia, South Korea’s Kospi rose 0.3 per cent to 6,657.40 and the Hang Seng in Hong Kong gained 1.4 per cent to 26,029.02. The Shanghai Composite index traded 0.3 per cent higher at 4,091.01.

Australia’s S&P/ASX 200 slipped 0.3 per cent, to 8,689.50.

Taiwan’s Taiex lost 0.6 per cent, and India‘s Sensex gained 0.4 per cent.

The price of a barrel of Brent crude oil to be delivered in June fell 0.5 per cent to $110.71 early Wednesday. Brent to be delivered in July dropped 0.6 per cent to $103.74. Brent oil was around $70 per barrel before the war began in late February.

Benchmark US crude fell 0.6 per cent to $99.32 a barrel.

The UAE’s departure from Opec, due to happen on Friday, has been closely watched by oil markets. Opec accounts for roughly 40 per cent of global oil output, and the UAE is one of Opec’s largest oil producers. It has pushed back against Opec production quotas in recent years, wanting to sell more oil to the rest of the world.

“The UAE’s exit will increase (oil) output,” ING Bank strategists Warren Patterson and Ewa Manthey wrote in a research note on Wednesday. “The UAE has been increasingly frustrated over recent years by its output being constrained by Opec production quotas, which have kept it well below its potential.”

But as US-Iran negotiations for a permanent end to the Iran war stalled and the Strait of Hormuz, where roughly one fifth of the world’s oil passed through before the war, was still largely closed, short term impacts on oil prices will still depend mainly on prospects for reopening the waterway, analysts said.

The UAE was the third largest oil producer within Opec before the Iran war. ING said its departure “will reduce Opec’s effectiveness in managing and influencing the global oil market through supply measures.”

Investors are also awaiting more updates on US-Iran peace talks, although limited progress has been made. Iran has offered to reopen the Strait of Hormuz if the United States lifts its blockade on its ports. So far, the US appears to be ruling out a deal that excludes the Islamic Republic’s nuclear programme.

The Federal Reserve is expected to announce a decision on interest rates later Wednesday.

On Tuesday, Wall Street retreated from its recent record highs. The benchmark S&P 500 fell 0.5 per cent from its latest all-time high to 7,138.80. The Dow Jones Industrial Average edged down 0.1 per cent to 49,141.93, and the technology-heavy Nasdaq composite dropped 0.9 per cent to 24,663.80.

Artificial intelligence-related stocks led the losses. Chip company Broadcom lost 4.4 per cent, Nvidia fell 1.6 per cent and Micron Technology lost 3.9 per cent. Alphabet, Amazon, Microsoft and Meta Platforms are reporting quarterly results on Wednesday.

In other dealings early Wednesday the US dollar rose slightly to 159.63 Japanese yen from 159.62 yen. The euro was trading at $1.1708, down from $1.1712.

The yield on the US 10-year Treasury remained at 4.35 per cent.