UAE oil output hits record high as Abu Dhabi pushes beyond OPEC limits

Traders Union
All News
Commodities
UAE boosts oil supply

Highlights

UAE crude output hit a record 4.1 million barrels a day in June.
The previous peak was 4 million barrels a day in 2020.
Saudi output rose to 7.3 million barrels a day.
Brent eased toward $76 after briefly topping $80.

The UAE pumped an average of 4.1 million barrels a day in June, according to the International Energy Agency, surpassing its previous peak of 4 million barrels a day in 2020, Bloomberg reported. The increase came as the country used its own fleet and additional ships to move barrels out of the Persian Gulf, even as regional security risks remained high.

Abu Dhabi moves faster than Gulf peers

The UAE’s June output was the clearest sign yet that it has acted more forcefully than its neighbors to recover from the war’s disruption. Tanker-tracking data showed the country had already restored exports to pre-war levels last month.

The shift followed the UAE’s exit from OPEC at the end of April, freeing it from production limits that had long shaped Gulf supply policy. Oil traders have since watched how far Abu Dhabi would lift supply, especially as the Persian Gulf tried to reopen after months of conflict.

Saudi Arabia also raised output, pumping 7.3 million barrels a day in June, up 900,000 barrels from the previous month. Kuwait increased production to 1.4 million barrels a day, while Iraq reached 2 million barrels a day. Still, the IEA said those producers remained below pre-war levels.

Hormuz risk clouds recovery

The rebound in crude flows helped ease earlier tightness in global oil markets and pushed some regions toward signs of oversupply. That recovery was aided by a fragile interim peace agreement between Washington and Tehran, which allowed more tankers to pass through the Strait of Hormuz.

The picture changed again this week after President Donald Trump said the ceasefire was effectively void, and the U.S. struck Iranian sites for two consecutive days. Tehran fired on Bahrain and Kuwait, adding to fears over shipping security.

Brent crude briefly moved above $80 a barrel earlier in the week before easing toward $76 on Friday. The move showed that traders are still pricing the risk of renewed disruption, even as supply from the UAE and other Gulf producers has improved.

Gulf supply is no longer moving in lockstep

The UAE’s record production matters because it shows how the Gulf oil map is changing. Abu Dhabi is now acting with more independence after leaving OPEC, while Saudi Arabia, Kuwait, and Iraq are still rebuilding flows more slowly.

The recovery is also uneven. The IEA said Gulf refinery activity has lagged crude output, with refined-product exports still less than half their pre-conflict levels. That means more crude supply does not automatically solve fuel-market tightness.

Earlier, we reported that IEA warns of weaker oil demand and supply surplus by 2027.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.