UAE Crude Output Crashes Amid Strait of Hormuz Closure

The United Arab Emirates' oil output has plummeted by more than half due to the Iran conflict and the closure of the Strait of Hormuz, which is forcing state oil giant ADNOC to implement widespread production shut-ins. The halt of commercial navigation through the critical maritime chokepoint has caused massive disruptions on global energy markets.

According to secondary sources reporting to the Organization of the Petroleum Exporting Countries (OPEC), the UAE produced just under 3.4 million barrels per day in January, accounting for more than 3% of global demand. The shut-ins have affected both onshore and offshore production at ADNOC.

The company had previously announced that it was cutting offshore production, and sources confirm that all offshore production is now offline. This includes exports of Upper Zakum crude, Das Blend, and Umm Lulu field oil, which were previously around 1 million bpd, 700,000 bpd, and 230,000 bpd respectively.