UAE oil exports surpass prewar levels despite Hormuz disruption, energy minister says

The United Arab Emirates surpassed prewar oil export levels despite disruptions at the Strait of Hormuz, according to its Minister of Energy and Infrastructure, Suhail Al Mazrouei. Speaking at the Adipec conference in Abu Dhabi, Al Mazrouei stated that the country has been working diligently to maintain a reliable supply to the global market.

In June, the UAE shipped 3.94 million barrels of crude and condensate per day, marking the highest monthly total in the past year. This represents a significant improvement from March, when the closure of the Hormuz strait cut exports to a record low of 2.13 million barrels per day, as reported by Kpler data.

Al Mazrouei acknowledged the impact on consumers, emphasizing that high commodity prices could negatively affect demand. He attributed the UAE's success to the Habshan–Fujairah pipeline, which can transport up to 1.5 million barrels per day and has played a crucial role in filling the supply gap resulting from reduced exports from other nations due to the Hormuz blockage. The UAE recently announced plans to expand this pipeline, with completion expected by 2027, which could double export capacity through Fujairah.

Oil prices have remained volatile since the outbreak of the Iran war on February 28, with prices surging to over $120 per barrel in March due to escalating tensions and the virtual halt of ship traffic through Hormuz. However, prices have since fallen as peace talks between the US and Iran aim to resolve the conflict. Brent, the benchmark for two-thirds of the world's oil, is currently trading near $110 per barrel, while West Texas Intermediate is around $100 per barrel as of Monday.

Despite the disruptions, industry experts, such as BP's Meg O'Neill, have praised the resilience of the global energy system, noting that oil prices did not rise as high as initially anticipated.