Abu Dhabi National Oil Co. (ADNOC) is set to decrease the volume of crude oil supplied to Asian customers in August and September. This reduction, amounting to approximately 5% of shipments sold on the spot market, is already contributing to an increase in the price of ADNOC's flagship Murban oil grade. This move specifically applies to over-the-counter transactions, meaning physical cargoes acquired through ICE Futures Abu Dhabi will not be affected.
The Murban grade, a crucial benchmark for Asian buyers and the primary oil grade for the United Arab Emirates, has reached price levels not seen since April. It has climbed to a premium of nearly $7 per barrel over Brent futures this week, a significant shift from earlier in August when it was trading at a discount to the benchmark. The cutbacks are reportedly due to scheduled maintenance activities at Abu Dhabi's onshore oil fields, although an ADNOC spokesperson declined to comment on the matter.
This 5% reduction falls within operational tolerance limits, which permit a certain degree of variation for unforeseen technical constraints. Traders have noted that no specific reason was provided by ADNOC for these cuts. Back in March, ADNOC had announced a deferral of planned maintenance from May to September due to the "current situation in the Gulf region," though it no longer publishes these updates.
