UAE: UAE oil output surges in June
Latest reading: Turning to production, the UAE’s oil output increased to 3.81 million barrels per day (mbpd) in June from 2.17 mbpd in May, as disruptions related to the Iran war eased.
Brent crude oil prices averaged USD 84.49 per barrel in June, down 18.6% from May. On 30 June, the commodity traded at USD 72.94 per barrel, down 20.7% from 29 May.
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.