The United Arab Emirates (UAE) expects to produce around 2.5 million barrels per day (bpd) in July, down from a high for the year so far of 2.6 million bpd in June, a Gulf oil industry source told Reuters.
"Production was a record high (for 2011) in June of around 2.6 and July will also around the 2.5 range but its too early to say what it will be," the source told Reuters on condition of anonymity. OPEC output policy talks collapsed in June after several members of the producer group opposed a Saudi-led push to raise production. Saudi Arabia and its Gulf allies, including the UAE, have since said they will supply as much crude as the market wants -- without a formal OPEC agreement.
The International Energy Agency (IEA) announced a plan on June 23 to release 60 million barrels of emergency oil stocks to help fill a supply shortfall from the loss of Libyan crude since early 2011. Major consuming countries of the IEA are expected to decide by July 23 whether to draw further on their stocks, but OPEC oil producers say the releases are unnecessary. "There is no need for the IEA to release more stocks," the industry source said.
"The UAE and other Gulf OPEC countries have been increasing their production and using their spare capacity to meet any extra demand." Top oil exporter Saudi Arabia also produced a high this year of 9.8 million bpd in June, up by around 900,000 bpd from May.
