Reuters: UAE oil output halved as Strait of Hormuz closure disrupts global markets

The United Arab Emirates’ daily oil production has fallen by more than half as the ongoing conflict with Iran and the effective closure of the Strait of Hormuz forced state oil company ADNOC to implement widespread production shut-ins, two sources told Reuters.

The Strait of Hormuz, a critical maritime chokepoint normally used to transport about a fifth of the world’s oil supply, has been at the center of escalating tensions, causing major disruptions to global energy markets.

On March 16, ADNOC halted oil loading operations at the UAE’s port of Fujairah, a key oil bunkering and storage hub, following a drone attack. Operations had just resumed on March 15 after a separate attack over the weekend.

In January, the UAE produced just under 3.4 million barrels per day — more than 3% of global demand — making it the third-largest producer in OPEC.

The temporary well closures affected both onshore and offshore production, the sources said, requesting anonymity due to the sensitivity of the situation.

By Sabina Mammadli