UAE oil production hits record high after leaving Opec
UAE oil production hits record high after leaving Opec Submitted by Sean Mathews on Fri, 07/10/2026 - 17:24 The Gulf state's surging production shows how it has worked around Iran's control of the Strait of Hormuz An Abu Dhabi National Oil Company facility in the United Arab Emirates, on 3 March 3 2026 (Ryan Lim/AFP) Off The UAE boosted oil production to an all-time high last month, shaking off concerns about Iran’s control of the Strait of Hormuz and capitalising on its departure from the Saudi-led energy alliance Opec. The UAE pumped 4.1 million barrels per day (bpd) of oil in June, the International Atomic Energy Agency (IAEA) said in a report released on Friday. That is a substantial increase from the UAE’s average production of 3.5 million bpd in 2025. The current number surpasses the UAE’s previous high of four million bpd in 2020, when Opec+ was riven by a price war between Saudi Arabia and Russia. The UAE’s surging production reflects analysts' assessments that Abu Dhabi long felt constrained by Saudi-led Opec. The UAE has invested heavily in boosting its production capacity but complained that Saudi Arabia, in a bid to support prices, had stopped it from producing more. Abu Dhabi exited Opec in May as part of a wider rift with Riyadh that includes differences over Yemen, Sudan and Israel. (adsbygoogle = window.adsbygoogle || []).push({}); The UAE’s exit from Opec was welcomed by the Trump administration, which is sensitive to rising energy prices amid the US-Israeli war on Iran. Brent, the international benchmark, hit above $100 per barrel at the height of the war that began on 28 February, but did not rally in the worst-case view many analysts predicted, with Iran and later, the US, imposing blockades in the Strait of Hormuz. Analysts say prices were kept in check by a historic release of reserves from western countries and China’s decision to slash its crude imports by around 30 percent. The combination of increased supply and lower demand served as a buffer for the global economy, although prices for refined products, such as liquefied petroleum gas, diesel, and jet fuel, rallied. UAE exports hold steady 'Empowered': UAE's exit from Opec appeases Trump, delivers blow to Saudi Arabia Read More » Buyers in Asia, which are heavily dependent on Gulf energy, also faced much higher prices than those in the US and western Europe. The IAEA warned in its report that while crude is returning to the market, refined products from the Gulf remain below half of pre-war levels. Still, the UAE’s ability to sustain exports underscores how it has been able to work around Iran’s control of the Strait of Hormuz. The UAE has a pipeline that terminates at Fujairah Port, bypassing the Strait of Hormuz. Still, it is vulnerable to Iranian drone attacks. Reuters reported in June that the UAE paid Iran billions of dollars in return for a halt to attacks on the country, in an about-face for the Gulf state that launched dozens of attacks on Iran alongside the US and Israel during the war. Maritime intelligence experts say the UAE has also been sending oil through the Strait of Hormuz on “dark” vessels, with their transponders turned off. The Gulf state has its own fleet of tankers and has also turned to shipowners willing to risk Iranian strikes to secure higher shipping rates. Energy News Post Date Override 0 Update Date Mon, 05/04/2020 - 21:19 Update Date Override 0