UAE Restores Crude Exports to Pre-Crisis Levels as June Output Hits Record 4.1 Million bpd

The UAE has restored its crude oil exports to pre-crisis levels, shipping continuously through the Strait of Hormuz and surrounding waters since early June. After leaving the Organization of the Petroleum Exporting Countries on May 1, the country has employed multiple methods to cope with periodic blockades of the strait: using tankers in "dark mode" to transit the strait, transshipping to larger vessels outside the Strait of Hormuz, and maximizing use of the onshore pipeline that carries crude from the west to the east of the country to bypass the strait. According to vessel tracking data, the UAE exported more crude through the Strait of Hormuz in June and July than other Gulf producers.

The UAE has recently issued an unprecedented number of crude sales tenders. In late July, Abu Dhabi National Oil Company issued its seventh tender since early June, offering millions of barrels for sale for delivery between August and October, with delivery points including the Zirku Island and Das Island ports inside the Gulf, the Fujairah port outside the Gulf, or ship-to-ship transfers off Fujairah and in Malaysia.

UAE crude production reached 4.1 million barrels per day in June, an all-time high. The country produced 3.3 million barrels per day in May. Against the backdrop of leaving OPEC and ramping up output, June production rose significantly, while the country continued to expand export volumes through "dark mode" transits and by offering spot loadings at Fujairah and Oman's Sohar port.