Business | Oil & Gas
Adnoc to maintain supply of crude to Asian lifters
Abu Dhabi National Oil Co (Adnoc) has notified Asian lifters that it will supply crude oil at full contracted volumes for November, as it did for October, in line with expectations, traders said on Monday.
- Reuters
- Published: 01:18 September 30, 2008
Tokyo: Abu Dhabi National Oil Co (Adnoc) has notified Asian lifters that it will supply crude oil at full contracted volumes for November, as it did for October, in line with expectations, traders said on Monday.
The move comes after the Organisation of Petroleum Exporting Countries (Opec) decided earlier this month to cut production and also ahead of scheduled oilfield maintenance at some Abu Dhabi fields from late October.
A trader said Adnoc did not cut supplies because it was leading Opec producer Saudi Arabia that had boosted crude supplies ahead of the Opec decision, so the Saudis were the ones that should make the cuts.
Saudi trims exports
Saudi Arabia has trimmed oil supplies to international majors and US refiners since the start of September, industry sources said last week. The notice on steady supply has been conveyed to the lifters, including four Japanese, one South Korean and one Chinese, traders said.
Another South Korean lifter said it has not received the notice yet from Adnoc, but it expects to receive the full contracted volumes.
Enough reserves
The steady supply indicates that Abu Dhabi, the main oil producer for the UAE, an Opec member, has enough supplies to make up for the oilfield maintenance.
Some traders said Abu Dhabi did not make changes to the fixed part of the crude allocation.
Opec ministers agreed on September 10 to revert to the group's 2007 production limit of 28.8 million barrels per day (bpd), a decision that would cut production by 520,000 bpd over the next 40 days.
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