An Abu Dhabi National Oil Company (Adnoc) refinery. Oil prices have been trending lower in the last few weeks due to over-production from Saudi Arabia, Russia and other countries. Image Credit: WAM

Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) would be reducing crude oil allocations for January in line with the recent Opec decision to cut production to rebalance oil markets.

In a tweet, Suhail Mohammad Faraj Al Mazroui, Minister of Energy and Industry said Murban grade of oil would be reduced by 15 per cent whereas Upper Zakum and Das oil reduction will be 5 per cent.

“The UAE is committed to the voluntary production adjustments agreed with its Opec and non-Opec partners under the ‘Declaration of Cooperation,” the energy minister tweeted.

Oil-producing countries agreed to cut production by 1.2 million barrels per day from January 2019 for six months to rebalance oil markets and support oil prices.

The deal was struck at a meeting between Opec and non-Opec members like Russia on Friday in Vienna.

As per the agreement, Opec (Organisation of the Petroleum Countries) will reduce output by 800,000 barrels per day and non-Opec by 400,000 barrels per day with exemptions to Iran, Venezuela and Libya as their production is hit by sanctions, economic turmoil and conflict respectively.

The move came as oil prices were trending lower in the last few weeks due to over production from Saudi Arabia, Russia and other countries and concerns on global economic growth.

From more than $85 (Dh312) per barrel in October, oil prices plunged to less than $60 per barrel in recent times. Saudi Arabia, Russia increased production anticipating shortage in the market following US sanctions on Iran.

The deal was achieved despite pressure from US president Donald Trump who insisted on lower oil prices and more production from Opec.