Abu Dhabi National Oil Company has cut official selling prices (OSPs) for its October crude oil exports to Asia by $1.35/barrel compared to September, market sources said. The reduction is larger than the market participants’ previously expected. ADNOC also cuts term volumes for October-loading cargoes by 30%, larger than the 5% reduction in September.
October OSP of ADNOC’s flagship Murban crude was cut by $1.35/barrel from September to a 50 cents/barrel discount to Dubai prices. October prices for Upper Zakum was also reduced by $1.35/barrel to a discount of 70 cents/barrel against Dubai prices or 20 cents/barrel discount to Murban October OSPs. Das Blend and Umm Lulu prices were set at discounts of 85 cents/barrel and 50 cents/barrel, respectively, against Dubai prices.
Despite reduced prices, the market seems to not react to it. Demand is expected to remain sluggish due to persistently weak refining margins.
