The United Arab Emirates reported to the Organization of the Petroleum Exporting Countries that its crude output climbed sharply in June, reflecting a substantial increase following Abu Dhabi's departure from the cartel earlier in May.
Reported volumes and change
In filings to OPEC, the UAE said it produced 3.8 million barrels per day (bpd) of crude in June. That figure represents an increase of 1.71 million bpd compared with May, which the UAE characterized as an 80% rise month-on-month.
Third-party estimate and timing
The June output number reported to OPEC comes before a recent escalation in hostilities between the US and Iran and any potential effects that might have had on flows from the Persian Gulf. Separately, the International Energy Agency in Paris estimated last week that the UAE's crude production increased by 900,000 bpd in June to reach an all-time high of 4.1 million bpd.
Context of the rise
Officials say the jump in production followed Abu Dhabi's decision to withdraw from OPEC at the beginning of May after years of dissatisfaction with the group's output limits. Despite regional disruptions, UAE authorities were able to move cargoes through the Strait of Hormuz during the period.
Market effects
The additional supply from the UAE contributed to a surplus in Asia and was cited as a factor in OPEC leader Saudi Arabia offering uncommon discounts on its crude shipments to the region.
OPEC reporting treatment
OPEC's Vienna-based secretariat continued to include the UAE's volumes in the group's total output in its data even after Abu Dhabi announced its departure effective May 1. OPEC's statutes state that a member's departure formally occurs at the start of the next calendar year, which the secretariat said underpins the reporting approach.
Saudi production figures
Saudi Arabia reported that its own production rose by 561,000 bpd in June to 7.122 million bpd. The kingdom said the volume it supplied to the market that month was 6.637 million bpd.
This article reports only the figures, statements and estimates provided to OPEC and by the IEA, and does not introduce additional data or analysis beyond those reported items.