UAE Oil Output Plummets Amid Strait of Hormuz Closure
The United Arab Emirates' oil production has plummeted by more than half due to the ongoing conflict in Iran and the effective closure of the Strait of Hormuz. State oil giant ADNOC implemented widespread production shut-ins, affecting both onshore and offshore output. This drastic reduction in oil output is a significant blow to 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. With the shutdown of commercial navigation through the Strait of Hormuz, oil loading operations were suspended at the UAE's port of Fujairah, a major oil bunkering and storage hub.
The halt of production is not limited to onshore output; ADNOC has also cut offshore production. Before the war, ADNOC exported approximately 1 million barrels per day (bpd) of Upper Zakum crude, just under 700,000 bpd of Das Blend, and about 230,000 bpd from the Umm Lulu field.