The United Arab Emirates raised oil production to a record level in September, even as the war involving Iran continued to threaten energy supplies across the Gulf. The increase shows the country’s ability to maintain oil flows during regional conflict and after leaving OPEC.
The International Energy Agency said the UAE produced 5.3 million barrels of oil a day in September, including condensates. That was an increase of 400,000 barrels a day from the previous month.
Crude oil production also rose to more than 4.4 million barrels a day, bringing output close to the country’s maximum capacity, according to the agency. Both figures marked new highs, exceeding earlier records for total oil production in August and crude production in June.
The increase comes at a critical time for global energy markets. The Iran war has put pressure on shipping routes and raised concerns about the movement of oil through the Strait of Hormuz, a key passage for energy exports from the Gulf.
The UAE has worked to keep exports moving despite the risks. It has used a fleet of tankers to transport oil through the narrow waterway and transfer cargoes to other vessels. This approach has helped the country continue shipping supplies while regional security remains uncertain.
The Strait of Hormuz is one of the world’s most important energy routes. Any prolonged disruption could affect oil supplies, shipping costs and prices in global markets. Gulf producers depend on the passage to deliver large volumes of crude to customers around the world.
The UAE’s recent production gains have also been supported by a major change in its oil policy. The country left the Organization of the Petroleum Exporting Countries in May, ending its participation in the group’s production limits.
For years, output restrictions had frustrated the UAE as it sought to increase production capacity. Leaving the group gave the country greater freedom to set output levels according to its own plans and market conditions.
The record figures suggest that the UAE is using that freedom to increase supply. However, producing more oil does not automatically mean that every additional barrel can be exported. Shipping conditions, storage levels and demand all affect how much crude can reach buyers.
The UAE’s rise also contributed to a broader recovery in Gulf oil flows. The International Energy Agency said exports and flows from regional producers reached more than 75% of pre-war levels in September.
Saudi Arabia led part of that recovery, according to the agency. The improvement suggests that Gulf producers have found ways to restore some shipments despite the conflict and continued risks to maritime traffic.
Still, the recovery remains fragile. A fresh wave of Iranian attacks on tankers passing through the Strait of Hormuz has raised questions about whether current export levels can be maintained. Growing hostilities involving Houthi rebels in Yemen have added to the risks facing ships in the region.
The attacks could disrupt tanker movements and force energy companies to change routes or delay shipments. Even when production remains high, problems with transport can limit the amount of oil that reaches international markets.
The UAE has also drawn heavily on its stored oil supplies. The International Energy Agency said the country reduced its observable above-ground inventories at a record pace in September.
The drawdown exceeded 270,000 barrels a day and pushed those inventories to an all-time low, according to the agency. Such a sharp reduction shows how the UAE has used stored oil to support supply during a period of disruption.
However, falling inventories may limit the country’s ability to keep exports high if production or shipping faces further problems. The balance between new output, domestic needs, exports and available storage will remain important in the months ahead.
The UAE’s production record offers evidence of its growing role in the global oil market. Its departure from OPEC has removed one constraint on output, while its tanker operations have helped maintain exports during the conflict.
Yet uncertainty remains over the future of Gulf energy flows. Further attacks on shipping or a wider escalation could weaken the recovery. For now, the UAE is producing more oil than ever, but the ability to move that supply safely through regional waters remains a major concern for global energy markets.
