The UAE and Saudi Arabia are increasing oil exports as tensions between the United States and Iran intensify. Traders say the move aims to cushion potential supply disruptions in the Middle East. Higher exports could stabilize markets as crude prices hover near multi-month highs.
Abu Dhabi is set to ship additional volumes of Murban crude in April, according to trade sources. State-owned Abu Dhabi National Oil Co offered extra cargoes to partners in its onshore concession. It remains unclear how much additional supply will reach global markets.
Read more: Oil prices climb amid rising US-Iran tensions
The increase comes as U.S. President Donald Trump considers possible military action against Iran over its nuclear programme. Washington has expanded its military presence in the region in recent weeks. Meanwhile, indirect talks between U.S. and Iranian officials took place in Geneva.
Oil prices traded above $72 per barrel on Friday, near their highest levels since July. Analysts say geopolitical risk premiums have grown due to fears of disruption through the Strait of Hormuz. The narrow waterway handles a significant share of global crude shipments.
Read more: Brent gains weekly as Iran-US tensions lift prices
Saudi Arabia is also ramping up output as part of contingency planning. Key members of the OPEC+ alliance will meet Sunday to review supply policy. Sources say the group may consider a modest production increase for April to calm markets.