UAE oil output falls in May amid maintenance

UAE oil output in May fell 3.59 per cent from the previous month to 2.42 million barrels a day (bpd), the latest estimates by the Paris-based International Energy Agency (IEA) show. But output was significantly above the UAE's 2.223 million bpd quota set by the Organisation of Petroleum Exporting Countries (Opec) in January 2009. In April, the UAE was estimated to have produced 2.51 million bpd of crude oil, while in March the output stood at 2.52 million bpd, said the IEA, which advises 28 industrialised countries on energy policy. Officials at the UAE Ministry of Energy weren't immediately available for comment on the IEA's estimates. "This [lower output] could be demand-driven. It may be linked to the maintenance at Upper Zakum. It's not a significant drop," Kate Dourian, Middle East editor for Platts, a global energy information provider, told Gulf News. IEA estimates showed the UAE has a sustainable oil production capacity of 2.69 million bpd, and its spare capacity versus may supply stood at 270,000 bpd. By the end of 2011, the UAE's sustainable oil production capacity is expected to rise to 2.74 million bpd. "The global oil prices have come down a little as there are concerns over US debt and fears of a contagion from the European debt crisis," said Dourian. Saudi Arabia, the biggest Opec producer, has estimated that global oil demand is going to rise an estimated 1.7 million bpd during the second half this year. "Asia is key to [the world's] oil demand growth," Dourian added. On Friday, Brent crude oil futures for August delivery traded lower around $113 a barrel, while the US crude benchmark West Texas Intermediate traded at around $94 a barrel. From / Gulf News