Jake FoxCrude oil (tracked by the United States Oil Fund, USO) slipped 1.8% to 132.21 dollars on the day, even as fresh data showed UAE oil output hit a record 4.1 million barrels per day in June, according to International Energy Agency estimates.
| Price | 132.21 USD |
|---|---|
| Day change | -2.43 (-1.8%) |
| 52-week range | 102.42 – 142.33 |
| RSI (14) | 61.18 |
A Record Month for Abu Dhabi
The jump from 3.3 million bpd in May to 4.1 million bpd in June marks the highest crude production the UAE has ever posted. That figure edges out the previous high of roughly 4 million bpd set in spring 2020, when OPEC+ members were locked in a price war during the early pandemic. It is also nearly double what the UAE was pumping back in March 2026, when the Strait of Hormuz crisis first flared up.
The surge followed the UAE's exit from OPEC, effective May 1, a move that freed the country to raise output without group quotas holding it back. The timing is notable: much of this increased production happened while the Strait of Hormuz was largely blockaded for the first half of June, a chokepoint that normally makes moving Gulf crude to global buyers far harder.
How UAE Oil Output Kept Moving Despite the Blockade
Tankers running in dark mode, meaning with tracking transponders switched off, slipped through the Strait during the worst of the disruption. At the same time, the UAE leaned harder on loading points that sit outside the strait entirely, offering crude for pickup off Fujairah and at Sohar in neighboring Oman. Both locations let Abu Dhabi's oil reach open water without transiting the contested chokepoint.
ADNOC's Bigger Bet on Fujairah
Abu Dhabi's national oil company, ADNOC, has pushed forward plans for a new pipeline, the West-East 1 Pipeline, aiming for it to start operating in 2027. Once running, it would double the UAE's export capacity through Fujairah, giving the country a permanent route around the strait rather than a workaround born of crisis. ADNOC has also earmarked as much as 55 billion dollars, roughly 200 billion UAE dirhams, for upstream and downstream projects over the next two years, a spending pace that followed closely on the heels of the OPEC exit announcement.
What the Price Move Signals
USO's pullback of 1.8% comes against a 52 week range of 102.42 to 142.33, with the fund's RSI reading 61.18, a level that suggests buying interest remains firm without being overheated. Record UAE supply adds a fresh source of barrels to a market already weighing geopolitical risk around the strait, tanker routing workarounds, and the pace of infrastructure builds like Fujairah that could reshape how much Gulf crude reaches buyers regardless of what happens at the chokepoint itself.
Frequently Asked Questions
How does the UAE export oil?
The UAE ships crude mainly by tanker from Gulf terminals and, increasingly, from loading points at Fujairah and Sohar that sit outside the Strait of Hormuz, avoiding the chokepoint entirely.
Can the UAE export oil?
Yes. Despite the Strait of Hormuz blockade in June, the UAE kept exports flowing using dark mode tankers and offshore loading outside the strait.
Does the UAE export oil?
Yes, the UAE is one of the world's larger crude exporters, with ADNOC managing production and shipping through both Gulf and non strait routes.
Does the UAE supply oil?
Yes, the UAE supplies crude oil to global markets, and its June output of 4.1 million barrels per day was a record for the country.
Is the UAE producing oil?
Yes, current UAE oil output stands at a record 4.1 million barrels per day as of June, up sharply from 3.3 million bpd in May.
Holly Herrera
James Stephens