UAE oil exports hit record high after OPEC exit, data shows

The United Arab Emirates pushed crude oil and condensate exports to a record 3.7 million barrels per day in June, preliminary ship-tracking data from Kpler and Vortexa showed.

The surge came weeks after Abu Dhabi ended nearly 60 years of OPEC membership on May 1, a decision made during the U.S.-Israeli war with Iran.

What happened to UAE oil exports after it left OPEC?

UAE crude and condensate exports climbed to their highest level on record after Abu Dhabi's OPEC exit. Exports averaged 3.7 million barrels per day this month, above the 3.1 million to 3.3 million bpd seen before the Middle East conflict disrupted regional shipping, according to Kpler senior oil analyst Johannes Rauball.

Why did the UAE leave OPEC?

Abu Dhabi's exit from the Organization of the Petroleum Exporting Countries was designed to maximize the value of its oil resources.

Leaving the producer group freed the UAE from output quotas that had capped how much crude it could sell. The move ended an OPEC membership that had lasted almost 60 years.

How is the UAE moving crude through the Strait of Hormuz safely?

Iran's chokehold on the Strait of Hormuz pushed Abu Dhabi National Oil Company, or ADNOC, to set up a tanker shuttle service. The service exports UAE crude on vessels with their transponders switched off, reducing the risk of attack while sailing through the Gulf.

Trade sources and experts said these so-called dark vessels have helped tankers evade strikes. ADNOC did not respond to an emailed request for comment.

How much oil is the UAE now exporting?

UAE exports last peaked at 3.44 million bpd in April 2020, during a short-lived oil price war between Saudi Arabia and Russia. This month's 3.7 million bpd average surpasses that record.

Abu Dhabi crude loadings reached 4 million bpd between June 1 and June 29, exceeding pre-war levels of 3.4 million bpd, said Emma Li, senior oil analyst at Vortexa.

What happens if the UAE exits OPEC?

Leaving OPEC has allowed the UAE to ramp up supply and exports without quota restrictions. Rauball said the rise reflects multiple factors, including a resumption of flows through the Strait of Hormuz that freed trapped vessels.

He added that UAE supply is closing in on pre-war levels, and the country has also been unwinding part of its inventories to keep volumes elevated.

Where is UAE crude oil being sold?

Asia remains ADNOC's biggest market, but demand has grown west of the Suez Canal as well. Buyers in Africa, the U.S. west coast, northwest Europe, and the Mediterranean have all shown increased interest, a source close to the matter said.

Trade sources added that ADNOC has sold crude to Nigeria's Dangote refinery and Turkey's Tupras.

What is the outlook for Gulf oil supply?

Oil loadings from the Gulf, excluding Iran, rose 65% month on month to 7 million bpd in June. That figure still trails the 16.6 million bpd recorded in February, before the conflict disrupted regional output, Vortexa's Li said.

ADNOC has also issued its fifth crude sale tender this month, offering Upper Zakum, Umm Lulu, or Das crude in parcels of 500,000 to 2 million barrels for loading between June and August, with the tender closing Wednesday.