UAE: UAE crude output remains weak in October; Brent prices decline
Brent Crude Oil averaged USD 88.95 per barrel in October, down 4.0% from September’s price. On 31 October, the commodity traded at USD 87.54 per barrel, 8.2% lower than on the last day of the previous month. The decline was chiefly driven by a selloff in early October amid concerns surrounding the health of the global economy. Prices regained some ground following the onset of the Israel-Hamas conflict.
Turning to production, UAE oil output rose slightly to 2.94 mbpd (million barrels per day) in October from September’s 2.92 mbpd but still remained at one of the lowest levels since early 2022.
UAE oil production this year will be weighed on by production curbs agreed with OPEC+ earlier in the year. Next year, oil production is projected to rise as these curbs are rolled back. Output will also benefit from an agreement with OPEC+ reached in June to raise the country’s 2024 quota by 0.20 mbpd.