Key facts
- UAE crude oil production reached a record 4.1 million barrels per day in June.
- The UAE officially withdrew from OPEC and OPEC+ on May 1.
- ADNOC plans to invest up to $55 billion in upstream and downstream projects.
- The UAE's production increase comes as oil prices have retreated from highs.
- ADNOC has adjusted its marketing strategy, shifting selling prices and offering discounted cargoes.
The United Arab Emirates has achieved a record crude oil output of 4.1 million barrels per day in June, surpassing its previous high and reflecting its recent exit from OPEC. Production has accelerated since the UAE formally withdrew from OPEC and OPEC+ on May 1, ending years of output restrictions.
Energy Minister Suhail Al Mazrouei stated that the UAE's investments in upstream capacity necessitate maximizing returns. Abu Dhabi National Oil Company (ADNOC) has invested tens of billions of dollars to expand production capacity to 5 million barrels per day, positioning the UAE as a major source of immediately available spare production.
The production increase occurs amidst a retreat in oil prices, with Brent crude falling below $72 a barrel from a peak above $120 during the recent Middle East conflict. The return of Gulf exports and recovering tanker traffic through the Strait of Hormuz have heightened concerns about oversupply.
ADNOC has also adjusted its marketing strategy, shifting the official selling prices for key crude grades to align with competing regional benchmarks and offering discounted cargoes through tenders to expand its customer base. This growth contrasts with other Gulf producers, whose output remains below pre-war levels despite a June rebound.
Free from OPEC quotas, Abu Dhabi is now positioned to increase output even as oil prices weaken, enabling it to compete for market share, particularly in Asia.