UAE oil yields hit a record high after OPEC exit

The United Arab Emirates has pushed its oil production to the highest level in its history, pumping 4.1 million barrels of crude oil every day in June. This record-breaking increase was recently confirmed by the International Atomic Energy Agency.

This big jump in oil production comes right after the UAE officially left the Organization of the Petroleum Exporting Countries (OPEC) in May. Leaving the group allows the UAE to make its own rules, freeing the country from the strict production limits that local officials felt were holding back their economy.

Before this, the country produced an average of 3.5 million barrels a day in 2015, and briefly reached 4 million barrels during an oil price war between Russia and Saudi Arabia in 2020. The UAE has spent billions of pounds to build better oil infrastructure. Because of this large investment, leaders in Abu Dhabi grew tired of Saudi Arabia forcing member countries to cut production just to keep global prices high.

Tensions finally boiled over due to political disagreements between the UAE and Saudi Arabia regarding foreign policies in Yemen, Sudan, and Israel. The decision to leave OPEC was quickly praised by Donald Trump and his administration. The US government was deeply worried about rising inflation and high fuel prices caused by the war involving Iran, Israel, and the US, so they welcomed the extra oil from the UAE to help lower costs.

When the war started on 28 February, global oil prices quickly shot past $100 per barrel. However, Western countries opened up their emergency oil reserves, and China cut its oil imports by 30%. Together, these actions saved the global energy market from a massive collapse.

Safe pipelines and secret ships

Despite the dangerous war and Iran’s heavy military presence around the Strait of Hormuz, the UAE has kept its oil exports moving without stopping. The main reason for this success is the Habshan-Fujairah pipeline. This pipeline carries oil across the desert directly to the port of Fujairah on the Gulf of Oman, completely avoiding the dangerous Strait of Hormuz.

However, this land pipeline is still at risk from drone attacks. Recent international news reports claim that while the UAE initially helped the US and Israel fight against Iran, Abu Dhabi later changed its strategy. To protect its oil facilities from being attacked, the UAE reportedly made secret financial deals with Iran.

At the same time, maritime tracking agencies reported that the UAE is using “dark vessels”—which are cargo ships that turn off their tracking systems. By hiding their locations, these tankers can slip through dangerous waters and secretly deliver oil to the global market.

The problem for buyers

While the UAE is bringing plenty of raw crude oil to the market, actual usable fuel remains very scarce. The International Atomic Energy Agency warned that global supplies of processed fuels—like diesel, LPG, and jet fuel—are still at less than half of what they were before the war.

This shortage has created a big unfairness in pricing. Asian countries rely heavily on oil from the Gulf region, and because of the shortages, they are now forced to pay much higher prices for fuel than Western countries.

Even with these high risks, the UAE is strengthening its position as a major global oil power. By using its own massive fleet of ships and paying extra to shipowners who are willing to sail through dangerous war zones, the UAE is proving that it can operate successfully on its own.