UAE Hits Record Oil Exports in June After Leaving OPEC

The United Arab Emirates (UAE) has seen its crude oil exports recover to levels seen before the Iran war, immediately after breaking free from production quota constraints following its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), Bloomberg reported on July 1 (local time).

According to Bloomberg, the UAE's exports of crude oil and condensate—an ultra-light crude oil produced as a byproduct of natural gas extraction—surged by approximately 30 percent in June from the previous month, exceeding 3.9 million barrels per day.

This figure is close to the highest level recorded since 2017.

Bloomberg explained that these findings are based on a compilation of vessel tracking data from energy market analytics firms Vortexa and Kpler.

Reuters also analyzed data from Vortexa and Kpler, reporting that June exports reached 3.7 million barrels per day, surpassing the previous record of 3.44 million barrels per day set in April 2020.

The surge in UAE oil exports, despite the blockade of the Strait of Hormuz due to the Iran war, is attributed to two bypass strategies employed by the UAE.

One is the operation of so-called dark vessels, which pass through the strait secretly by turning off their Automatic Identification System (AIS) transponders.

The other is a method of transporting crude oil through a bypass pipeline connected to the eastern coastal port of Fujairah, and then transferring it to other ships in the Gulf of Oman.

Reuters reported that the Abu Dhabi National Oil Company (ADNOC) has expanded its sales channels to Africa, the U.S. West Coast, Northwest Europe, and the Mediterranean, and has also supplied crude oil to the Dangote refinery in Nigeria and Tupras in Turkey.

Crude oil shipments from the Gulf region, excluding Iran, also surged 65 percent in June compared to the previous month, reaching 7 million barrels per day.

The UAE ended its approximately 60-year membership in OPEC on May 1.

The decision was made to maximize the value of its national resources by escaping the constraints of production quotas.

Since the withdrawal, market attention has been focused on how much crude oil the UAE would be able to supply to the market.

Goldman Sachs warned that if the impact of the Iran war eases and passage through the Strait of Hormuz is restored, the global crude oil market could return to a supply glut.

With the overall recovery in exports from Middle Eastern oil-producing countries, including the UAE's surge, combined with progress in U.S.-Iran negotiations, the price of Brent crude oil futures for August delivery fell to the $71 per barrel range on this day, returning to levels seen before the outbreak of the Iran war.
※ Please note: This article was translated by AI and may contain errors.