On Wednesday, UAE’s energy major Abu Dhabi National Oil Co. (ADNOC) stated that the nomination of all of its four crude grades for the November term would be slashed by 25%.
The cut followed the 30% curb it had set for October, and the other 5% cut for September, August, and July.
Volumes available for exports in November would be cut by 25% for all of its grades, the popular Murban and Upper Zakum, and Umm Lulu and Das Blend.
The cut has something to do with the country’s breaching of the Organization of Petroleum Exporting Countries and its allies (OPEC+) oil output cut pact in August.
According to Energy Minister Suhail Al Mazrouei, UAE exceeded its output quota by 103,000 bpd at 2.693 million bpd as electricity demand powered by natural gas, which was produced in concert with crude, jumped in the month.
Meanwhile, other analysts expected the output was 2.74 million bpd, while the International Energy Agency (IEA) predicted even higher in August, at 3.11 million bpd, way beyond its quota.
"Our production assessment is based on net exports that were relatively steady month-on-month at just above 2.7 million bpd, a crude stock build of 115,000 bpd, our estimate for crude throughput in domestic refineries of 370,000 bpd and an assumed 100,000 bpd of condensates that are spiked into crude oil streams," the IEA said.
