 raised crude oil production to 3.8 million barrels per day in June, its highest level since April 2020.){kind=link}
UAE Oil Output Hits 3.8mbpd After OPEC Exit
The United Arab Emirates (UAE) raised crude oil production to 3.8 million barrels per day in June, its highest level since April 2020, after quitting OPEC+ to escape quota restrictions.
According to Reuters, ADNOC’s exports even reached 3.94 million bpd, just shy of the record set in late 2025. The surge marks an early vindication of the UAE’s decision to leave OPEC on May 1, freeing its output from production caps.
At the height of the Iran war in May, UAE output had fallen to 2.11 million bpd, but investments in capacity allowed a rapid rebound. The IEA estimated higher figures, putting May output at 2.8 million bpd and February at 3.64 million bpd.
ADNOC has been selling crude at discounted prices, attracting new buyers such as Chinese teapot refineries and even California refiners, who joined its tenders for the first time.
Traders said the discounts made UAE barrels competitive against Iranian and Russian alternatives.
Energy Minister Suhail al-Mazrouei defended the OPEC exit, saying the UAE owed it to investors to supply global markets “without restrictions.”
The rebound outpaced other Gulf producers. Combined exports from Saudi Arabia, UAE, Kuwait, Iraq, and Iran rose to about 10 million bpd in June, up from 7 million in May, though still far below the 16.5 million bpd shipped a year earlier.
Saudi exports averaged 4.32 million bpd, Kuwait rose to 1.65 million bpd, while Iraq managed only 780,000 bpd, roughly one-fifth of pre-conflict levels.
Analysts noted that while the UAE’s surge eased fears of supply shortages, it also raised concerns about a short-term glut, with ADNOC selling 18 million barrels in its latest tender.
“Chinese teapots are now out buying… discounts are at levels that compete with Iranian and Russian barrels,” said Sparta analyst June Goh.