Abu Dhabi's state-owned Adnoc has informed customers that it will implement cuts of around 15pc to client nominations of all its crude exports loading in September, even as the Opec+ coalition considers further relaxing production quotas.
Several refiners in Asia-Pacific said that Adnoc will apply around a 15pc reduction to term crude nominations for September-loading shipments of its flagship light sour Murban crude. Adnoc will also implement cuts of around 15pc to light sour grades Umm Lulu and Das Blend and medium sour Upper Zakum crude. This is deeper than cuts of around 5pc that Adnoc will apply to August-loading term supplies.
It was unclear why Adnoc is deepening reductions for its September-loading term crude exports, with the decision coming ahead of the next meeting of Opec+ ministers scheduled for 1 July when the group is expected to decide on its production strategy for at least one month. Group delegates said shrinking OECD inventories and rising global crude prices could lead the coalition to consider a 500,000 b/d production rise when it irons out its August output policy.
Adnoc has also issued its latest monthly report projecting the amount of Murban that will be available for export on a 12-month rolling basis. The company raised the estimate for the grade's export availability from September to June 2022 to around 1.13mn b/d each month. But Adnoc kept the near-term forecast for July-August unchanged from last month's report, at around 1.07mn b/d in July and 1.105mn b/d in August.
