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SINGAPORE, Nov 28 (Reuters) – Abu Dhabi National Oil Co (ADNOC) will cut December crude supplies by 5% to some regular takers in Asia but will deliver them in January, five sources familiar with the matter said. Full contract supply on Monday.
The oil producer cited an operational forbearance clause that can adjust loadings by plus or minus 5%, usually for logistical reasons, the people said.
ADNOC exports most of its crude to Asia, with grades including Murban, Umm Lulu, Das and Upper Zakum.
The cuts come as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, cut production by 2 million barrels per day (bpd) starting in November, aimed at supporting prices.
“The production cuts have to be reflected in the market. It makes sense for oil producers to want to delay sales at these prices,” said a Singapore-based trader.
Benchmark Brent crude and WTI prices fell to 11-month lows on Monday. read more
Backwards for Middle East crude, Oman, Dubai and Murban have slipped this month as sentiment soured on oversupply concerns.
OPEC+ is scheduled to meet in Vienna on December 4.
ADNOC does not comment on commercial matters.
Reporting by Xu Muyu; Editing by Kirsten Donovan
Our standards: Thomson Reuters Trust Principles.
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