State-owned Abu Dhabi National Oil Co has cut its allocations for September-loading crude oil by 10% for the majority of its customers, a company spokesman said Tuesday.
Cuts in previous months have affected all three of ADNOC's crude grades -- Das Blend, Murban and Upper Zakum -- as part of the UAE's commitment under OPEC's November 30 deal to reduce production by 139,000 b/d in the first half of 2017 from October levels. That amounts to a quota of 2.874 million b/d.
The UAE produced 2.87 million b/d in June, and averaged 2.871 million b/d from January to June, according to the latest S&P Global Platts OPEC production survey, putting it just below its quota.
OPEC as a whole committed to cutting production by 1.2 million b/d from October levels, with several major non-OPEC producers, led by Russia, agreeing to cut 558,000 b/d in concert.
Originally envisaged as a six-month deal to allow the market to work down record high crude oil inventories, the deal was extended in May to March 2018. - Reuters -