UAE: UAE oil output stagnates again in October
Latest reading: Brent crude oil prices averaged USD 75.27 per barrel in October, up 3.0% from September. On 31 October, the commodity traded at USD 73.19 per barrel, up 1.7% from 30 September. Prices gained ground on heightened tensions in the Middle East.
Turning to production, in October, UAE oil output was unchanged at 2.96 mbpd (million barrels per day) for the third consecutive month, remaining at one of the lowest levels since late 2021.
Outlook: In early November, OPEC+ decided to postpone planned output increases from December to January, suggesting that UAE crude production will be lower in 2024 than previously estimated. Although OPEC+ greenlit a 0.20 mbpd increase in the UAE’s quota this year, the country has actually cut its output by 0.16 mbpd since January as part of voluntary reductions.
The outlook for crude production in 2025 is more upbeat. OPEC+ announced on 2 June that the UAE’s quota will gradually rise by 0.30 mbpd from January 2025 to September 2025. Moreover, the cartel is set to begin hiking output from January 2025 onward.