UAE: UAE oil output to reach new highs in 2025
Latest reading: Brent crude oil prices averaged USD 73.23 per barrel in December, down 0.4% from November. On 31 December, the commodity traded at USD 74.74 per barrel, up 2.1% from 29 November. Prices were broadly stable as trading volumes fell due to the holiday period.
Turning to production, in December, UAE oil output was largely unchanged at 2.91 mbpd (million barrels per day) from November’s 2.96, remaining at one of the lowest levels since late 2021. December’s print means that oil output averaged 2.94 mbpd over 2024 as a whole, down 0.4% from 2023 and the lowest level since 2021.
Outlook: In 2025, the UAE’s oil output should reach new highs, boosted by a 0.20 mbpd increase in its quota introduced in 2024 and another 0.30 mbpd increase to be phased in over 18 months from April. The UAE’s oil output should continue trending up over the rest of the decade, with the country’s largest oil firm having recently raised its production capacity to 4.85 mbpd with plans to raise it to 5.00 mbpd by 2027.