Hormuz Closure Forces UAE Oil Output Plunge by Half

The United Arab Emirates' oil production has taken a significant hit due to the ongoing Iran conflict and the closure of the Strait of Hormuz. The state oil giant, ADNOC, was forced to implement widespread production shut-ins, affecting both onshore and offshore output.

According to secondary sources reporting to OPEC, the UAE produced just under 3.4 million barrels per day in January, accounting for over 3% of global demand. The halt of commercial navigation through the Strait of Hormuz has caused massive disruptions in global energy markets.

Operations at the port of Fujairah were suspended on Monday due to a drone attack, after previously resuming following a separate attack over the weekend. ADNOC had said it would cut offshore production, and sources confirm that all offshore production is now offline.