UAE Oil Exports Exceed Quotas: Rising Tensions Within OPEC+

Despite commitments to OPEC+ to limit production, the United Arab Emirates shows oil export volumes well above quotas. This situation raises questions and rekindles tensions within the cartel.

Share:

The United Arab Emirates (UAE) are at the center of a controversy regarding their oil production levels. Officially bound by strict quotas set by OPEC+ since 2023, their export volumes consistently exceed the established limits. According to recent data from Commodities at Sea (CAS), UAE exports averaged 3.6 million barrels per day (b/d) from January to October 2024, far above the official quota of 2.912 million b/d.

Estimates vary depending on the sources. While the International Energy Agency (IEA) assesses UAE production at 3.23 million b/d for October, other observers report figures as high as 3.7 million b/d. These discrepancies raise doubts about the UAE’s adherence to quotas, a situation that could weaken OPEC+’s efforts to stabilize the oil market.

Quotas Not Respected and Overcapacity

Production quotas are a cornerstone of the OPEC+ cooperation agreement designed to balance global supply and demand. However, UAE export figures, which exclude oil refined domestically, suggest significant deviations. Local facilities, including Abu Dhabi’s Ruwais complex, with a capacity of up to 837,000 b/d, further complicate the calculation of exact volumes.

Meanwhile, the UAE government denies the accusations, arguing that condensates and natural gas liquids, not subject to OPEC+ quotas, are often mistaken for crude oil in analyses. However, several analysts believe these arguments are insufficient to explain the discrepancies revealed by maritime tracking systems and commercial data.

A Tense Geopolitical Context

This situation arises as OPEC+ struggles to maintain unity among its members. While attention has mainly focused on countries like Iraq or Russia for non-compliance, the lack of visible sanctions against the UAE could create internal tensions. In June 2025, the UAE is expected to benefit from an increase in its quota of 300,000 b/d, following intense negotiations with its partners.

In addition to its key role within OPEC+, Abu Dhabi has invested heavily to increase its production capacity to 4.85 million b/d, aiming for 5 million b/d by 2027. This strategy underscores the UAE’s ambition to become a major energy player while targeting gas self-sufficiency by 2030.

A Challenge for Market Balance

Non-compliance with quotas by the UAE could have consequences for the global oil market. Analysts fear an oversupply that could drive prices down in the short term. For OPEC+ members, the challenge is twofold: maintaining a united front against external challenges and ensuring that all members honor their commitments.

For the UAE, however, pumping more oil seems strategic, allowing them to maximize short-term revenues while strengthening their influence in the global energy market. According to an estimate by the Baker Institute for Energy Policy, fully exploiting the UAE’s production capacity could generate up to $70 billion annually by 2028.

Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.
Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.
The flow of crude between the Hamada field and the Zawiya refinery has resumed after emergency repairs, illustrating the mounting pressure on Libya’s ageing pipeline network that threatens the stability of domestic supply.
Libreville is intensifying the promotion of deep-water blocks, still seventy-two % unexplored, to offset the two hundred thousand barrels-per-day production drop recorded last year, according to GlobalData.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.