UAE: UAE crude output remains tepid in December; Brent prices drop
Brent crude oil prices averaged USD 77.54 per barrel in December, down 5.7% from November’s price. On 29 December, the commodity traded at USD 77.69 per barrel, 3.7% lower than on the same day of the previous month. Prices have remained muted in January, dented by soft global demand and strong non-OPEC+ supply.
Turning to production, UAE oil output fell marginally to 2.90 mbpd (million barrels per day) in December from November’s 2.91 mbpd, remaining at one of the lowest levels since late 2021.
After slipping last year, crude output is projected to expand this year on the back of an agreement with OPEC+ reached in June 2023 to boost the country’s 2024 quota by 0.20 mbpd. That said, the UAE committed on 30 November to reduce output by 0.16 mbpd in Q1 2024, dampening the speed of expansion. Further cuts ahead are possible given muted oil prices.