UAE Oil Production Surges 80% After Exiting OPEC

The United Arab Emirates increased its crude oil production by 80% in June, reaching 3.8 million barrels per day. This surge follows the nation's formal exit from the Organization of the Petroleum Exporting Countries on May 1, which freed Abu Dhabi from production quotas. While the UAE reported this figure, the International Energy Agency provided a higher estimate, placing June production at a record 4.1 million barrels per day.

The production increase of 1.71 million barrels per day from May occurred as the UAE maintained shipments through the Strait of Hormuz despite ongoing hostilities between the United States and Iran. This influx of oil contributed to a supply surplus in Asia, forcing the Government of Saudi Arabia to offer rare price discounts on its crude. Saudi Arabia also raised its output by 561,000 barrels per day to 7.122 million, though this increase was smaller in scale than that of the UAE.

Amidst these shifts, OPEC lowered its 2026 global oil demand growth estimate to 800,000 barrels per day. The International Energy Agency similarly projected a decline in global consumption for the current year.