The UAE increased its crude oil production to more than 3.8 million barrels per day (mmbbl/d) in June, reaching its highest level since April 2020 after withdrawing from OPEC and OPEC+ production quotas, Reuters reported, citing two sources familiar with production data.

The increase marks an early indication of the UAE’s strategy to boost production following its exit from OPEC and OPEC+ on May 1. June output exceeded production levels recorded before the US -Israeli conflict with Iran, as Abu Dhabi moved to maximize output after freeing itself from quota restrictions.

The UAE has maintained that its significant investments in expanding production capacity warranted greater flexibility in supplying global markets. At the time of the country’s withdrawal from OPEC, Minister of Energy and Infrastructure Suhail Al Mazrouei said the UAE had a responsibility to its investors to utilize its production capacity and meet market demand without production restrictions.

The rise in production comes as global oil market sentiment has shifted from concerns over supply disruptions during the conflict with Iran to expectations of a potential oversupply.

According to OPEC data submitted by the UAE, the country produced 2.11 mmbbl/d in May, when conflict-related disruptions were at their peak, compared with approximately 3.40 mmbbl/d in February. However, the International Energy Agency (IEA) estimated significantly higher production levels, placing UAE output at 2.8 mmbbl/d in May and 3.64 mmbbl/d in February.

Reuters also cited traders as saying that the Abu Dhabi National Oil Company (ADNOC) has been offering crude cargoes through tenders at discounted prices, reflecting increased supply availability.

The UAE’s production recovery has outpaced that of other Gulf producers, many of which have resumed exports through the Strait of Hormuz but continue to produce below pre-conflict levels.