The UAE, Opec's third-largest oil producer, is producing close to its maximum oil capacity based on the Opec+ alliance baseline, Suhail Al Mazrouei, Minister of Energy and Infrastructure, said on Monday.
The country, which holds about 6 per cent of the world's crude reserves, is producing 3.168m barrels a day of oil in line with targets set by the Opec+ agreement and is committed to this target capacity “until the end of the agreement”, Mr Al Mazrouei said.
In comments reported by Wam news agency, Mr Al Mazrouei said he was making the clarification in response to recent media reports.
This month at the Middle East and North Africa-Europe Future Energy Dialogue in Jordan, he said the latest data showed Opec+ was running 2.6 million barrels a day short of its production target.
The 23-member super group of producers will meet on June 30 and is expected to stick with its plans announced earlier this month.
Opec+ this month agreed to increase its July and August output by about 50 per cent to 648,000 bpd.
This will bring another 216,000 bpd on top of the scheduled 432,000 bpd coming to the market next month. The increase will be divided proportionally among members of the alliance.
The planned August output increase will fully restore the 5.8 million bpd of output that was cut during the Covid-19 pandemic.
“We believe that the Opec+ group will look to navigate a careful path between raising output to ease supply shortages and exhausting the limited global spare capacity,” Abu Dhabi Commercial Bank economists Monica Malik and Thirumalai Nagesh said in a report on Monday.
“The actual Russian oil flows to the global economy are also likely to play a critical role in shaping the group output for September and the fourth quarter of 2022. We believe that Russia will remain part of the Opec+ agreement, although it could be exempted from the output quotas amidst the imposed sanctions.”
Brent, the global benchmark for two thirds of the world's oil, rose about 67 per cent last year.
It has rallied about 48 per cent this year as developed economies recover from the coronavirus pandemic and at a time when Russia's military offensive in Ukraine is entering its fifth month and the EU is pressing forward with plans to banning most Russian oil imports by the end of this year.
Market fundamentals remain tight as demand outpaces supply amid the war in Ukraine, rising interest rates and looming recession concerns.
Brent was trading 1.31 per cent higher at $116.6 a barrel at 8.06am UAE time on Tuesday. West Texas Intermediate, the gauge that tracks US crude, was up 1.19 per cent at $110.9 a barrel.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The schedule
December 5 - 23: Shooting competition, Al Dhafra Shooting Club
December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq
December 11 - 20: Dates competition, from 4pm
December 12 - 20: Sour milk competition
December 13: Falcon beauty competition
December 14 and 20: Saluki races
December 15: Arabian horse races, from 4pm
December 16 - 19: Falconry competition
December 18: Camel milk competition, from 7.30 - 9.30 am
December 20 and 21: Sheep beauty competition, from 10am
December 22: The best herd of 30 camels
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McIlroy's struggles in 2016/17
European Tour: 6 events, 16 rounds, 5 cuts, 0 wins, 3 top-10s, 4 top-25s, 72,5567 points, ranked 16th
PGA Tour: 8 events, 26 rounds, 6 cuts, 0 wins, 4 top-10s, 5 top-25s, 526 points, ranked 71st
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
