Key facts
- UAE oil production reached a record 4.1 million barrels per day in June.
- This output level is the highest since April 2020.
- The UAE exited OPEC on May 1 to remove production caps.
- ADNOC has been selling crude at discounted prices.
- Combined exports from Saudi Arabia, UAE, Kuwait, Iraq, and Iran rose significantly in June.
The United Arab Emirates has achieved a record oil production level of 4.1 million barrels per day in June, following its exit from OPEC on May 1. This surge in output, the highest since April 2020, allows the UAE to fully utilize its expanded production capacity, which was previously constrained by OPEC quotas. Abu Dhabi National Oil Company (ADNOC) has been selling crude at discounted prices through tenders, attracting buyers including Chinese teapot refineries and US West Coast refiners. The increased supply from the UAE and other Gulf producers has contributed to a shift in oil markets from concerns over supply disruptions to worries about surplus. Brent crude has fallen to around $72 a barrel from a four-year high above $126 in April. While other Gulf nations also saw output increases, their production remains below pre-conflict levels, unlike the UAE which has outpaced them.