The United Arab Emirates will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) on May 1, according to a statement carried by the country’s state news agency. Abu Dhabi framed the move as part of a longer-term strategy to accelerate investment in domestic production and align energy policy with broader economic priorities.

OPEC, founded in 1960 to coordinate output policies among major producers, has long sought to manage supply in ways that influence global oil prices. The UAE’s departure also extends to OPEC+, the wider coalition that includes Russia and has played a central role in production management since 2016.

The exit is likely to test the cohesion of the producer group and represents a political and strategic setback for Saudi Arabia, OPEC’s largest and most influential member. OPEC countries collectively account for roughly a third of global oil production and control the bulk of proven reserves, giving the organization outsized influence even when day-to-day market pricing is driven by a broader set of factors.