Abu Dhabi National Oil Co (ADNOC) said on Tuesday it has the ability to increase oil production by several hundred thousand barrels per day (bpd) if required to alleviate any supply shortage in the global market.
State-run ADNOC remains on track to increase its production capacity to 3.5 million bpd by the end of 2018 from around 3.3 million bpd now, it said in a statement.
The United Arab Emirates pumped 2.87 million bpd in June, two industry sources said. That means the Gulf OPEC member has the potential to boost supplies by some 400,000 bpd if it produces at maximum capacity now, with the possibility of adding around 200,000 bpd more by the end of the year.
US President Donald Trump lashed out at OPEC on Sunday with a warning to stop manipulating oil markets and piled pressure on US ally Saudi Arabia to raise supplies to compensate for lower exports from Iran.
On June 23, the Organization of the Petroleum Exporting Countries agreed with Russia and other oil-producing allies to raise output from July, with Saudi Arabia pledging a “measurable” supply boost but giving no specific numbers.
OPEC and non-OPEC said in their statement last month that they would raise supply by returning to 100 per cent compliance with previously agreed output cuts, after months of underproduction. That would mean a roughly 1 million bpd increase in output.
Separately, Saudi Energy Minister Khalid al-Falih discussed oil market developments with his Russian counterpart, and the two agreed to continue close coordination in the interest of producers, consumers and the global economy, the Saudi Energy Ministry said on Tuesday.
UAE energy minister Suhail al-Mazrouei also said on Tuesday that OPEC would aim to adhere to the group’s “overall conformity levels” for the rest of 2018 and that the UAE was ready to help alleviate any supply shortage.