UAE’s ADNOC to cut January oil supplies to Asia; Kuwait, Oman to follow

Abu Dhabi National Oil Company on Tuesday said it would cut crude supplies by 3-5 percent across its three export grades to meet commitments under an OPEC deal to curb output. The move is one of the first visible indicators that oil markets could be physically tighter in 2017 as the Organization of the Petroleum Exporting Countries (OPEC) and other producers cut production to ease a supply glut and prop up prices. Still, ADNOC’s cut is unlikely to have a large impact on the market as it is within operational tolerance limits, while some buyers have extra oil from Saudi Arabia and Iraq to replace lost Abu Dhabi supplies, traders said. “I think it’s manageable. Many (refiners) received incremental Arab Extra Light in January to cover,” said a North Asian refinery official, speaking on condition of anonymity. In a notice to term lifters, ADNOC said it would reduce Murban […]

Comments are closed.