UAE crude production near record at 3.8 million bpd in June

The United Arab Emirates has raised its crude oil production to near-record levels, pumping more than 3.8 million barrels per day in June, according to industry sources. This surge follows the Gulf nation's formal exit from the OPEC cartel on May 1, a move that freed it from production quotas and allowed it to rapidly capitalize on its spare capacity.

The June output, estimated by Reuters to be the highest since April 2020, marks a dramatic rebound from May, when production was curtailed to 2.11 million barrels per day due to the regional conflict. The increase provides an early validation of the UAE's decision to leave OPEC, which officials said was necessary to honor investments in production capacity. Energy Minister Suhail al-Mazrouei had stated the country owed it to investors to supply global markets "without restrictions."

To move the increased volumes, the state-owned Abu Dhabi National Oil Company (ADNOC) has been selling crude through tenders at discounted prices. This aggressive marketing strategy has attracted new buyers, including Chinese independent refiners, who were drawn by the wider discounts amid a short-term glut. Some cargoes have also moved to buyers on the...