Dubai: Abu Dhabi National Oil Company (ADNOC) on Wednesday lowered its prices for light crude grades in May and said it was committed to reducing output as part of the OPEC+ deal.
The OPEC+ group, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, on Sunday agreed to cut output by a record 9.7 million barrels per day (bpd) in May and June to ease a supply glut exacerbated by a slump in global fuel demand because of the coronavirus outbreak.
ADNOC said it was committed to lowering production from its current levels of 4.1 million bpd of crude, but added that its contractual terms with customers remain unaffected by the announcement.
ADNOC said it will follow up with customers regarding any required changes and confirmations for cargoes loading in May and June.
ADNOC set its official selling price (OSP) for May for its benchmark Murban crude at minus $6.95 per barrel to Dubai quotes published by S&P Global Platts, the company said. That is down from minus $2.75 for April.
Umm Lulu’s OSP for May was set at parity to Murban’s OSP while the OSP for Das crude was at 35 cents a barrel below Murban’s OSP, it added.
The OSP for Upper Zakum was 10 cents above Murban’s OSP.
This is the second month that ADNOC is pricing its term cargoes on forward prices.
ADNOC said it will continue to provide forward pricing on a monthly basis.
“This will ensure that our customers have visibility of the prices that they will pay ahead of delivery and can plan accordingly,” ADNOC said.