According to official data, the production capacity of the Abu Dhabi National Oil Company (ADNOC) of the UAE is now at 4.85 million barrels per day, a significant increase from 4.65 million barrels per day reported at the end of last year.

ADNOC has announced this increase in production capacity one month before the Organization of the Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, are scheduled to meet to decide on production policies for the second half of 2024.

According to official data, ADNOC's production capacity is now at 4.85 million barrels per day, a significant increase from the 4.65 million barrels per day reported at the end of last year.

With ADNOC's latest move, the UAE expects to achieve a higher capacity rating when OPEC holds its meeting in June 2024.

OPEC is expected to complete the evaluation of production capacities of its members by the end of June, based on assessments by three consultants: IHS, Wood Mackenzie, and Rystad. This assessment will be used to calculate the baseline production levels for OPEC members for 2025.

The UAE's crude oil supply has been closely monitored as OPEC continues to restrict supply to prevent a surplus in the global energy market.

The UAE may produce more crude oil than its OPEC quota allows, which is why the Gulf nation aims to increase its production capacity.

While the UAE's economy remains dependent on oil prices, Saudi Arabia's economy, considered the most diversified among Gulf countries, faces less pressure to keep oil prices higher.

ADNOC has set a $150 billion spending plan, including boosting crude oil production capacity. Due to its commitment to OPEC+ production policies, the UAE had to lower its economic growth forecast for 2024 last month.

In its April 2024 report, OPEC stated that the crude oil supply will need to be monitored closely in the coming months to ensure a healthy and sustainable market balance, given the higher-than-expected demand.

OPEC has maintained its forecast for global oil demand growth this year and predicts demand growth will be 2.7 million barrels per day in Q3 2024.

Earlier in April 2024, a series of key market data indicated that oil consumption appears to be stronger than anticipated, amid speculation that crude oil prices could reach $100 per barrel this summer.

Source: Vietstock