UAE: UAE crude output remains downbeat in July; Brent prices increase
Brent crude oil averaged USD 84.05 per barrel in July, up 1.4% from June. On 31 July, the commodity traded at USD 80.64 per barrel, down 6.7% from 28 June. Prices rose to a three-month high in July, as supply was constrained by OPEC+ cuts, and demand prospects were boosted by lower-than-expected U.S. inflation.
Turning to production, in July, UAE oil output rose slightly to 2.95 mbpd (million barrels per day), from 2.94 mbpd in June, remaining at one of the lowest levels since late 2021.
The UAE’s oil output declined last year and is expected to stay subdued in 2024. Despite OPEC+ agreeing to increase the UAE’s quota by 0.20 mbpd this year, the country has reduced output by 0.16 mbpd since January as part of voluntary cuts, which will only be gradually reversed starting in October.
On a brighter note, OPEC+ announced on 2 June that the UAE’s quota would gradually increase by 0.3 mbpd from January 2025 to September 2025, signaling a positive outlook for crude production next year.