ADNOC cuts Jan 2021 nominations for Murban by 20%: source

Abu Dhabi National Oil Co has informed its term customers it will reduce nominations for all four crude grades, with a 20% cut for Murban, a source familiar with the matter told S&P Global Platts on Dec. 8.

ADNOC notified customers that lift contracted monthly volumes — known as term lifters — that it would cut the quantity available for export over January 2021 by 15% for Upper Zakum and Das Blend and by 5% for Umm Lulu, the source said.

ADNOC in December cut all four crude grade nominations by 20% following a 25% reduction in November and a 30% in October. The state-owned oil company made drastic cuts for all crude grades in the three previous months to make up for overproduction in August.

The UAE, OPEC’s third largest oil producer, breached its OPEC+ quota in August, pumping 2.693 million b/d, Energy Minister Suhail al-Mazrouei tweeted Sept. 1, vowing to compensate for overproduction.

These reductions in nominations follow a 5% cut that ADNOC made for September, August and July. June term volumes of Murban and Upper Zakum were slashed 20%, with Das Blend and Umm Lulu cut 5%, as the UAE joined Saudi Arabia, Kuwait and Oman in enacting voluntary additional cuts below their OPEC+ quotas for that month.

Platts could not reach ADNOC for comments.
Credit: platts

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