Key facts
- UAE crude production exceeded 3.8 million barrels per day in June.
- This output level is the highest in over six years.
- The UAE exited OPEC on May 1.
- ADNOC is changing its pricing for offshore crude grades (Upper Zakum, Das, Umm Lulu) from Murban futures to the Dubai benchmark.
- Murban crude will continue to be priced against Murban futures.
- The UAE aims to reach a production capacity of 5 million barrels per day by 2027.
The United Arab Emirates has significantly boosted its crude oil production, surpassing 3.8 million barrels per day in June, marking its highest output in over six years. This surge follows the UAE's departure from OPEC on May 1, freeing it from production quotas. Concurrently, Abu Dhabi National Oil Co. (ADNOC) is revising its pricing strategy for key offshore crude grades—Upper Zakum, Das, and Umm Lulu. These grades will now be priced based on a differential to the Dubai benchmark, rather than Murban futures, a move aimed at better reflecting their physical market value for Asian refiners. Murban crude, ADNOC's flagship light-sweet grade and a prominent global benchmark traded on ICE Futures Abu Dhabi, will maintain its pricing against Murban futures. The shift for the medium-sour offshore grades to a Dubai-linked formula is expected to correct a previous distortion where they became artificially expensive for Asian buyers due to their linkage with Murban futures during periods of high demand for light-sweet crudes. This adjustment aligns these crudes with their physical peers like Oman and Qatar's Al-Shaheen, providing Asian refiners with more transparent and fundamental pricing. With the UAE now free from OPEC constraints, it is projected to increase its total oil output to 5.0 million barrels per day by 2027, supported by substantial capital investments. ADNOC has outlined a $150 billion capital expenditure program for 2026-2030, alongside an additional Dh200 billion local project pipeline, to enhance daily production capacity and expand export infrastructure, including a new West-East pipeline to double export capacity through Fujairah.