en.Wedoany.com Reported - The latest monthly report from the International Energy Agency (IEA) shows that the UAE's oil production hit a record high in June, reflecting the country's rapid response to market turmoil caused by the US-Iran conflict and its deployment of a massive tanker fleet to address wartime supply disruptions.
According to IEA data, the United Arab Emirates' crude oil output reached 4.1 million barrels per day in June, surpassing the previous record of 4 million barrels per day set in 2020. The report states that Abu Dhabi is the most proactive oil producer in the Gulf region in responding to supply disruptions caused by the Iran war.
The agency noted that the recovery of oil flows in the Gulf region, coupled with a fragile peace agreement between Washington and Tehran, shifted global markets from supply tightness to signs of oversupply in some areas, erasing most of the price gains during the war. However, tensions subsequently escalated again, with US President Donald Trump declaring the ceasefire agreement effectively void, and both sides launching new attacks. US forces struck targets inside Iran for two consecutive days, while Tehran launched attacks on Bahrain and Kuwait. Brent crude oil prices briefly exceeded $80 per barrel earlier this week before falling back below $76 per barrel on Friday.
Other major Gulf oil producers also increased output. Saudi Arabia's June production was 7.3 million barrels per day, up 900,000 barrels per day from the previous month; Kuwait's output rose to 1.4 million barrels per day; and Iraq's output increased to 2 million barrels per day. However, the IEA confirmed that the recovery of refinery activity in the Gulf region is slower than crude oil production, with refined product exports still less than half of pre-conflict levels.
Compliance with production quotas among OPEC+ members in June was uneven. Saudi Arabia produced 7.34 million barrels per day, about 2.95 million barrels per day below its implied target; Iraq produced 1.96 million barrels per day, 2.39 million barrels per day below; and Kuwait was about 1.26 million barrels per day below. Conversely, Kazakhstan exceeded its quota by about 290,000 barrels per day, while Gabon, Nigeria, and Oman also saw modest increases. Sustainable capacity data shows Saudi Arabia leading with 12.11 million barrels per day, Russia at about 9.4 million barrels per day, Iraq at 4.87 million barrels per day, Iran at 3.8 million barrels per day, and Kuwait at 2.88 million barrels per day. However, actual spare capacity is extremely limited, with total OPEC+ spare capacity at only about 170,000 barrels per day. Only Algeria, Equatorial Guinea, and Mexico have small surpluses, while most other countries have virtually no spare capacity, meaning any new supply disruption could quickly impact market balance and oil prices.
