UAE’s ADNOC reinstates full oil supplies in Dec

Abu Dhabi National Oil Company (ADNOC) plans to supply full volumes of all crude grades to its Asian customers in December, several sources with knowledge of the matter told Reuters on Monday.

It will be the first time since the oil price crash in the second quarter of last year when the COVID-19 pandemic devastated demand that ADNOC has not implemented any supply cuts.

Murban, Umm Lulu, Das, and Upper Zakum are among the crude grades, according to the sources. 

The United Arab Emirates exports most of its crude oil to Asia.

Brent crude futures gained nearly 60% since the beginning of the year to hit a near three-year high on Monday, supported by tighter supplies from OPEC+ and a global recovery in fuel demand due to pandemic.

In July, OPEC+ agreed to increase production by 400,000 barrels per day between August and December, so buyers expected ADNOC to resume full supply in December. 

A rise in supplies has weighed on ICE Murban crude futures’ premium to Dubai quotes this month, averaging about $1.50 a barrel, down from last month’s average of $2.20, Reuters data showed.

Last month, ADNOC informed customers that it will reduce term crude supplies by 5% in November.