The United Arab Emirates swiftly expanded its crude oil production following its departure from OPEC and the OPEC+ alliance, ramping up output to more than 3.8 million barrels per day in June. This marks the highest level the country has seen in over six years, as Abu Dhabi moves to convert previously constrained spare capacity into export volumes.
Since officially leaving OPEC on May 1, the UAE no longer faces output restrictions that had curtailed its ability to fully exploit its upstream capacity. Its national oil company, ADNOC, has invested heavily in expanding overall daily capacity to 5 million barrels, placing the UAE among the world’s leading holders of immediately deployable oil supply.
This production surge occurs amid declining oil prices, with Brent crude falling below $72 per barrel after briefly surging above $120 during recent Middle East conflicts. The return of Gulf exports and normalized tanker flows through the Strait of Hormuz have stoked concerns about a potential supply glut in the market.
In response to these changing dynamics, ADNOC adjusted its crude pricing approach for major grades such as Upper Zakum, Das, and Umm Lulu. The company moved from a Murban-linked pricing model to benchmark its medium-sour crude against Dubai crude, aligning more closely with regional competitors. ADNOC has also introduced discounted cargo tenders to attract a broader customer base as additional volumes reach the market.
The UAE’s production increase contrasts sharply with other Gulf producers, many of whom still operate below pre-crisis output levels. Despite a rebound in wider OPEC production in June, driven by restored barrels after the Strait of Hormuz disruptions, most regional oil fields have yet to fully recover. As a free agent outside of OPEC quotas, Abu Dhabi is positioned to boost supply even amid softer prices, aiming to secure greater market share, particularly in Asia.