The United Arab Emirates has seen its oil exports rebound significantly, reaching nearly 85% of pre-war levels by early June, according to the International Energy Agency (IEA). This recovery was achieved through strategic infrastructure use, including a 380km pipeline from Habshan to the port of Fujairah, which bypasses the Strait of Hormuz and can export 1.8 million barrels of crude per day. Additionally, the 42-million-barrel Mandous underground storage facility near Fujairah provided crucial flexibility, enabling exports to rise from 1.9 million barrels per day in March to 4.3 million barrels per day in early June.
Contributing to this surge, the Abu Dhabi National Oil Company (ADNOC) initiated a tanker shuttle service. This involved using vessels with transponders switched off—dubbed "dark ships"—to reduce the risk of attack while traversing the Gulf. This tactic, along with a general increase in ships going "dark" to avoid detection, has been key to increasing oil flows through the Strait of Hormuz, transforming them from a trickle to a steady stream despite ongoing conflict.
While conventional vessel-tracking data initially showed little change, satellite imagery and accounts from shipping executives and Asian oil buyers confirm a significant increase in transits. Rapidan Energy Group estimates that approximately $2 million barrels of oil and related products per day are now flowing out of the Gulf. This, combined with a dip in Chinese demand and rising US exports, has helped bring oil prices down almost 30% from their peak during the height of the war. Saudi Arabia also contributed to regional export increases by boosting crude oil flows through its East-West pipeline to the Red Sea port of Yanbu, raising exports from $2 million barrels per day pre-war to over $5 million barrels per day in early June.
The UAE's robust response to the effective closure of the Strait of Hormuz, described by IEA analysts as demonstrating "impressive agility," has allowed it to maintain a relatively high level of exports amid severe disruptions. Its recent exit from OPEC on May 1, aimed at maximizing resource value free from quota constraints, also allowed it to boost crude and condensate exports to a record average of about $3.7 million barrels per day in June, exceeding pre-war levels of $3.1 million to $3.3 million barrels per day. This included Abu Dhabi crude loadings hitting $4 million barrels per day between June 1 and June 29, surpassing pre-war levels of $3.4 million barrels per day.
