The UAE cut its oil production to below its OPEC+ quota in October, the country’s energy ministry said. The emirates pumped 2.44 million bpd of crude last month, below its production ceiling of 2.59 million bpd, which resulted in 126% compliance with its OPEC+ agreed quota. OPEC’s third-largest producer cut production deeper than its quota because it sought to compensate for overproduction in August. During that month, the UAE pumped 2.693 million bpd of oil amid a peak seasonal electricity demand.
State-owned ADNOC has been reducing its monthly nominations since September to help the country compensate for the overproduction. The company notified its term customers that it would cut nominations for Murban, Upper Zakum, Umm Lulu, and Das Blend grades for delivery in December by 20%. Eleven OPEC+ members are required to make deeper production cuts due to overproduction in the past months. The UAE and Angola are the only producers that have so far progressed significantly in carrying out the compensation cuts.
