The United Arab Emirates produced 2.693 million bpd of crude oil in August, exceeding its OPEC+ quota by 100,000 bpd after hot temperature boosted associated gas intake by power plants, Reuters reported, citing two sources familiar with the matter. OPEC+ pact allows the emirates to pump 2.590 million bpd of crude oil.
The sources noted that the UAE would compensate for the additional output by cutting more production in the coming months. Energy Minister Suhail al-Mazrouei confirmed that the country is preparing measures to compensate for the temporary output rise caused by peak summer electricity demand. OPEC and its allies are seeking to relax their coordinated supply curbs to 7.7 million bpd on August 1 from 9.7 million bpd which started in May.
Power demand in the UAE seasonally peaks during the summer month when the air conditioner uses increase. However, for this year, it was boosted as people were ordered to stay at their homes amid measures to contain the COVID-19 pandemic.
