UAE: UAE oil output gains more steam in November
Latest reading: Brent crude oil prices averaged USD 63.69 per barrel in November, down 0.5% from October. On 28 November, the commodity traded at USD 63.24 per barrel, down 2.9% from 31 October.
Turning to production, the UAE’s oil output rose to 3.38 million barrels per day (mbpd) in November—up 12.5% year on year—from 3.36 mbpd in October (up 13.8% yoy). November’s growth rate remained close to October’s over three-year high, bolstered by higher OPEC+ quotas; in mid-2024, OPEC+ agreed to raise the UAE’s quota by 0.3 mbpd between April and September of this year.
Outlook: The 0.3 mbpd boost to the UAE’s quota is now fully phased in, but the country’s output should continue to rise as OPEC+ continues to loosen production restrictions for the cartel. OPEC+ may boost the UAE’s quota ahead, as the country’s recent expansion in production capabilities has chafed against the cartel’s output restrictions. In July, the government said it was targeting output of 5 mbpd by 2027, and stated that it could raise production to 6 mbpd if market demand was sufficient, which would make the UAE the world’s fourth-largest oil producer, only after the U.S., Saudi Arabia and Russia.