According to preliminary talk in the market Friday morning, Abu Dhabi National Oil Company may cut its July-loading volumes of crude to Asian customers by 5%. The cuts would apply to all four grades of crude — Murban, Das Blend, Umm Lulu, and Upper Zakum, said market participants, who were still unsure of further details surrounding the recent news. Report informs citing the S&P Global.
ADNOC was not immediately available for comment.
Several questions arose from the news, which market participants said they were still unsure of.
It was not immediately clear whether the reduction would be issued on top of ADNOC’s production cuts that it mattered to customers for June.
“Is it a lower cut than for June, or is the 5% in addition to what was cut for June?” asked a trader with a South Asian refiner.
Additionally, it was not clear if this news was intended for all of the company’s crude customers, or whether the cuts had been issued to individual buyers only, traders said.
“Not sure if [it is the] same [announcement] to everyone,” a China-based trader. said
Last month, ADNOC cut June-loading volumes of its flagship Murban and Upper Zakum grades by 20%, and 5% for Umm Lulu and Das Blend. Before that, the state-owned entity had announced 15% and 5% cuts for May-loading volumes of the same grades.
The UAE — OPEC’s third-largest oil producer — agreed to cut output from about 4.1 million b/d in April to around 2.5 million b/d in May and June. The reductions are part of the action agreed by the
broader OPEC+ pact that will see 23 members trim output collectively by 9.7 million b/d during these two months.