Oil
UAE oil production hits record high in September
The United Arab Emirates increased oil output to record levels last month, according to the International Energy Agency.
Key points
- Total oil production rose by 400,000 barrels daily to 5.3 million.
- Crude output approached maximum capacity at over 4.4 million barrels per day.
- The country drew down above-ground inventories at a record pace.
Production growth
According to a monthly report from the International Energy Agency (Rigzone reported), the United Arab Emirates expanded total petroleum output, which includes condensates, by 400,000 barrels daily during September, reaching a total of 5.3 million barrels per day. Crude extraction climbed past 4.4 million barrels daily, bringing production close to the nation's peak operational capacity.
This growth followed the country's departure from the Organization of the Petroleum Exporting Countries in May, which removed previous output restrictions. Additionally, regional producers benefited from increased flows through the Strait of Hormuz, achieving more than 75 percent of pre-conflict volumes in September as Saudi Arabia also ramped up exports.
Inventory levels and risks
To maintain export flows through the key maritime chokepoint, the United Arab Emirates utilised a dedicated tanker fleet to move shipments past disruptions before transferring them to other vessels. However, the surge in exports coincided with a substantial reduction in domestic reserves.
Data cited by the agency showed that the nation depleted observable surface stockpiles at a rate exceeding 270,000 barrels per day throughout September, driving inventories down to historic lows. Analysts noted that ongoing security challenges, including renewed attacks on tankers in the region and hostilities involving Houthi forces in Yemen, continue to threaten the sustainability of the supply rebound.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
68.2% of United Arab Emirates’s merchandise exports were fuels in 2023Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
