The United Arab Emirates has decided to withdraw from the Organization of the Petroleum Exporting Countries (OPEC), a move analysts describe as a major setback for Saudi Arabia and a political gain for U.S. President Donald Trump. The decision, set to take effect next month, marks a significant shift in Middle Eastern energy alliances.

According to the report, the UAE’s departure stems from long-standing policy differences with Saudi Arabia. While Riyadh favors production cuts to maintain high oil prices, Abu Dhabi prioritizes maximizing output and export volumes for greater profit. Energy analyst Arne Lohmann Rasmussen noted that the UAE focuses on production levels, whereas Saudi Arabia emphasizes price stability.

Analysts suggest the decision is driven more by political motives than economic ones. Ellen Wald of the Atlantic Council indicated that the UAE may be seeking to weaken OPEC, historically viewed as hostile by Trump, in exchange for U.S. security assurances against Iran. The exit of OPEC’s third-largest producer raises questions about the 65-year-old alliance’s future and signals intensifying regional competition between Saudi Arabia and the UAE.