DUBAI: The UAE produced 2.7 million barrels per day (bpd) of oil in March, an industry source said, pumping oil at full capacity as demand remained strong and up 100,000 bpd on the previous month’s output.

While in line with mounting U.S. and European Union pressures on buyers of Iranian crude to cut imports from the Islamic Republic, the UAE has promised Asian customers it will meet any additional demand, but with a capacity of around 2.7 million bpd, the country has no spare is producing at its limit.

 

“The production is at full capacity in March, demand is high and there is more oil going into storage,” the source said.

 

In February, the UAE pumped 2.6 million bpd of oil, its Oil Minister Mohammed bin Dhaen Al-Hamli said.

 

OPEC’s output last month rose to its highest level since October 2008 and the UAE’s production was above the traders’ expectations.

 

The European Union will impose a full embargo on Iranian oil imports from July 1.

U.S. and EU sanctions on countries importing Iran’s crude oil exports are to go into effect by July 1.

 

The U.S. has been leaning on countries to reduce their imports of Iranian crude as part of broad-based sanctions aimed at pressuring Tehran.

 

Countries risk being cut off from the U.S. financial system unless they can show they have taken steps to substantially reduce their reliance on Iranian oil, though some traders and analysts have questioned Washington’s willingness to target China and India, Iran’s two largest oil customers.

 

So far the U.S. has given waivers to Japan and 10 EU countries who have cut back on purchases.