The United Arab Emirates is on course to achieve its full oil capacity target more than a year earlier than expected.
Abu Dhabi National Oil Co. is likely to reach its 5 million barrel-a-day goal by the end of next year or early 2026, ahead of the 2027 goal the company had set, according to people with knowledge of the operations. The higher capacity will be a potential source of tension as the Organization of Petroleum Exporting Countries and its allies deliberates new production quotas later this year.
OPEC and its partners have been restricting output for years to shore up the market and raise prices. The UAE — which said this month that it had raised capacity from last year’s level — has been eager to use some of its spare volumes. The country has occasionally clashed with OPEC’s de-facto leader Saudi Arabia on the issue, risking a split among the group three years ago, before a compromise was found.
Abu Dhabi is currently producing at about two-thirds of its capability. Its economy is arguably among the most diversified in the Gulf and it faces less pressure to keep oil prices high, though crude remains key to the emirate. OPEC+ is scheduled to review members’ existing capacity levels later this year, and use that to set output baseline levels — the starting point from which cuts are calculated — for 2025.
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