UAE crude output hits record 4.1M barrels per day in June: IEA

Crude oil production in the United Arab Emirates reached an all-time high in June as Abu Dhabi moved more aggressively than other Gulf producers to restore supplies disrupted by the Iran war, according to the International Energy Agency (IEA).

The UAE pumped an average of 4.1 million barrels per day (bpd) last month, surpassing its previous record of 4 million bpd reached during the brief Saudi-Russian oil price war in 2020, the agency said in its monthly Oil Market Report.

The increase followed the UAE's departure from the Organization of the Petroleum Exporting Countries (OPEC) at the end of April, allowing the country to pursue production expansion plans without the group's output restrictions.

Abu Dhabi has deployed its own tanker fleet and hired additional vessels, including ships operated by South Korea-based Sinokor Group, to transport crude from the Persian Gulf.

Some vessels reportedly sailed with their Automatic Identification System transponders switched off, making their movements more difficult to track.

Most of the UAE's production recovery occurred before renewed attacks on commercial vessels in the Strait of Hormuz this week again disrupted traffic through the strategic waterway.

The recovery in Gulf oil supplies, combined with an earlier ceasefire framework between the US and Iran, had eased concerns about shortages and created signs of oversupply in some markets, reversing much of the wartime increase in crude prices.

However, tensions escalated again after US President Donald Trump said the ceasefire was effectively over following renewed exchanges of strikes.

US forces targeted sites in Iran for two consecutive days, while Tehran carried out attacks against Bahrain and Kuwait.

Brent crude futures rose above $80 per barrel earlier in the week before falling to around $76 on Friday.

The Gulf region's other major oil producers also increased production in June, although their output remained below levels recorded before the conflict.

Saudi Arabia produced 7.3 million bpd, an increase of about 900,000 bpd from May, according to the IEA.

Kuwait's production rose to an average of 1.4 million bpd, while Iraq's output increased to 2 million bpd.

Despite the recovery in crude production and exports, refinery operations in the Gulf have resumed more slowly.

Exports of refined petroleum products remained at less than half of their pre-war levels, the IEA said.