UAE: UAE oil output remains near record high in July
Latest reading: The UAE’s oil output fell to 3.78 million barrels per day (mbpd) in July from 3.81 mbpd in June, but remained near record highs as the UAE took advantage of its recent OPEC exit, Red Sea export routes, plus ships switching off their transponders in the Strait of Hormuz.
Outlook: The collapse of the Iran-U.S. agreement to reopen the Hormuz Strait bodes poorly for UAE oil output in the short term. However, an eventual peace deal should see the UAE ramp up production rapidly.
In 2027, oil production should increase more substantially as Hormuz Strait trade disruptions are overcome and the UAE takes advantage of its recent exit from the OPEC+ cartel; in June, the International Energy Agency, an intergovernmental body that helps to coordinate global energy policy, said it projects UAE oil output to reach 5.2 mbpd in 2027.