Despite a decline in UAE oil exports in August, reaching the lowest level since May, oil exports from the Gulf state to China hit their highest level in 13 months, according to data compiled by Bloomberg. The data revealed that UAE oil exports in August averaged 2.83 million barrels per day, compared to 2.84 million barrels per day in July, making August exports the lowest since May.
According to shipping data, China accounted for 25% of UAE oil exports in August, representing the highest level since July 2020. UAE oil exports in August exceeded the production target agreed upon with the OPEC+ alliance, which set the UAE’s production share at 2.765 million barrels per day for August.
Decline in UAE Oil Exports to Asia
Oil exports to Japan and India, the largest buyers of UAE oil, fell to their lowest levels since May, and exports to South Korea, Taiwan, and Thailand also decreased on a monthly basis.
The UAE has production capacities of up to 4 million barrels per day, but the OPEC+ agreement restricts much of the country's output. However, the alliance agreed in July to increase the baseline, which determines the reduction size for the UAE in the production cut agreement to 3.5 million barrels per day from the current 3.17 million.
Additionally, Saudi Arabia and Russia's baseline production levels were approved to rise to 11.5 million barrels per day each, up from 11 million. Iraq and Kuwait also achieved gains by agreeing to increase their respective production ceilings by 150,000 barrels per day, using the new baselines starting from May 2022.
