In this list

UAE's oil GDP to return to growth in 2022 on global crude demand: central bank

Energy | Oil | Crude Oil

Platts Crude Oil Marketwire

Commodities | Energy | Electric Power | Nuclear | LNG | Natural Gas | Natural Gas (European) | Oil | Crude Oil | Refined Products

Market Movers Europe, Oct 2-6: Power market gears up for winter as gas supply loses Groningen field

Oil | Energy Transition | Energy

APPEC 2024

Energy | Natural Gas

EC has 'relatively little' feedback on gas supply contracted from AggregateEU

Energy | Oil | Crude Oil

Dubai Crude Oil Price Assessment

Metals | Energy | Coal | Energy Transition | Electric Power | LNG | Natural Gas | Steel | Steel Raw Materials | Coking Coal | Emissions | Carbon | Electricity | Renewables

Commodity Tracker: 5 charts to watch this week

For full access to real-time updates, breaking news, analysis, pricing and data visualization subscribe today.

Subscribe Now

UAE's oil GDP to return to growth in 2022 on global crude demand: central bank


Oil GDP to grow 5% in 2022 after shrinking 2% in 2021

Overall GDP to double in 2022 compared with 2021

UAE is boosting oil output in line with OPEC+ pact

  • Author
  • Dania Saadi
  • Editor
  • Adithya Ram
  • Commodity
  • Oil

The UAE's oil GDP will return to growth in 2022 after contracting in 2021 thanks to an uptick in global demand sparked by vaccination rates in major economies, the central bank said in its latest quarterly economic report, amid an increase in oil prices and OPEC+ production despite the spread of the omicron variant of the coronavirus.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Oil GDP will grow by 5% in 2022 after shrinking by 2% in 2021, the central bank said in the report. Overall GDP is projected to double to 4.2% in 2022, thanks mainly to the growth in the oil sector, it added.

"Real oil GDP growth projection for 2022 has not been changed and remains at 5.0%, reflecting the expected increase in demand with the majority of the world economies being vaccinated," the central bank said. "Both, non-oil and oil GDP projections for 2022 are subject to upside risks if global economies, trade and travel reach the full recovery point faster than expected, while downside risks are related to uncertainties around new variants [of the coronavirus] and vaccination rates globally."

OPEC+ pact

The UAE, OPEC's third biggest producer, increased its output gradually in 2021 in line with the OPEC+ relaxation of oil output curbs that were initiated in 2020 at the start of the pandemic. The UAE's oil GDP shrank 6% in 2020 as the pandemic reduced global demand for crude.

OPEC+ agreed on Jan. 4 to increase its output by a planned 400,000 b/d in February, in accordance with a July agreement to boost production monthly.

In affirming a 400,000 b/d output increase for February, the OPEC + alliance signaled continued confidence that the omicron variant will have a smaller impact on global oil demand than previously assumed, and crude prices have so far proved resilient, hovering around $80/b. S&P Global Platts assessed Dated Brent at $78.99/b after the meeting.

OPEC+, which meets monthly, will convene next on Feb. 2 to decide on March production levels.