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Friday 29 May 2020

Abu Dhabi to Cut July Crude Nominations by 5%

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DUBAI (Reuters) — State-run Abu Dhabi National Oil Company (ADNOC) has informed customers of a cut in its crude oil nominations for July in line with a decision by OPEC+ last month to reduce supplies, three sources with knowledge of the matter told Reuters.

Nominations for all crude grades — Murban, Upper Zakum, Das and Umm Lulu — will be cut by 5% for all term lifters in July, the sources said, citing a letter to buyers dated May 28.

For May, ADNOC reduced the supply of its Murban and Upper Zakum crude by 15% and reduced the supply of its Umm Lulu and Das crude by 5%. For June, ADNOC has told buyers of a cut of 20% in both Murban and Upper Zakum crude grades and a 5% cut in Das and Umm Lulu crude grades.

OPEC and allies led by Russia, a group known as OPEC+, agreed in April to a new supply pact from May 1 to shore up the market following a slide in demand caused by lockdowns to contain the new coronavirus. OPEC+ plans to reduce output by a record 9.7 mln barrels per day for May and June.

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