UAE to Ship Less Oil From This Month in Line With OPEC+ Cuts
(Bloomberg) -- The state oil company of Abu Dhabi, part of the United Arab Emirates, told customers that it will reduce shipments of crude oil from this month, in line with OPEC+’s surprise decision to tighten supplies.
Abu Dhabu National Oil Co., also known as Adnoc, will cut the volumes by 5% for all of its cargoes being shipped from May, according to people who were informed by the producer. That’s within the lower range of the operational tolerance rule for long-term contracts, under which the company has the ability to supply plus or minus 5% of monthly volumes.
Adnoc didn’t immediately comment on the matter.
It’s the first sign yet that a member of the OPEC+ coalition is moving toward implementing the group’s production cuts of around 1.6 million barrels a day by July. Saudi Arabia in April led the cartel by pledging its own 500,000 barrel-a-day supply reduction, with fellow members including Kuwait, UAE and Algeria following suit.
The Organization of the Petroleum Exporting Countries and its allies are currently proceeding with preparations for an in-person meeting at its Vienna headquarters next month. UAE is the third-biggest producer within OPEC.
Middle Eastern producers including Adnoc have operational tolerance rules as part of their long-term contracts with customers which enables them to fine-tune supplies to the exact capacity of different oil tankers. But the tolerances can also be used to reduce supplies unilaterally.
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More gas & LNG news

Russia, Turkey Discuss Gas Swap to Pay for Nuclear Plant

India LNG Buyers Negotiate US Deals Before Modi-Trump Summit

Moldova Seeks Deal to Keep the Lights on After Russia Cut Gas Supply

Zelenskiy Says Working With Trump’s Team, Seeking Deal With US

Norway Gets First Ship to Carry Waste Carbon to Undersea Storage

ADNOC Gas delivers record $5 billion net income for 2024

Quebec Says It’s Open to LNG, Oil Projects After Trump Threats

Big Oil’s Wave of Buyouts Sets Up Next Leg of Energy IPO Rebound

Ecopetrol Shares Drop As Petro Proposes Shale Operation Sale
