Cuts for Aug supply to be deepened by Adnoc
On Monday, a vital piece of information was revealed by trade sources, who said that cuts would be slightly deepened by Abu Dhabi National Oil Company (Adnoc) on its main crude grades to Asia in August. This move was quite expected after OPEC - Organization of the Petroleum Exporting Countries - reaffirmed its export quotas last month.
After an agreement to cut 4.2 million barrels per day (bpd) of oil output since last summer, in an effort to shore up prices battered by recession, the OPEC ministers kept production steady at their meeting in May.
Murban, Lower Zakum, Umm Shaif and Upper Zakum would be provided crudes by Adnoc, the main oil producer in the United Arab Emirates, at 19 per cent below contracted volumes in August, against 18 per cent cuts for July.
The month of May saw oil supply from the OPEC rising, up from April and March, when adherence appeared to have peaked, as oil prices rallied.
It was seen that the UAE, which has been cutting supply to Asia since December, was pumping 2.24 million barrels per day (BPD), which was clearly more than its targeted output.
After the lows near $30 a barrel last winter, crude prices have more than doubled.
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