ADNOC to cut crude oil supplies to Asia in August and September; flagship grade Murban premium surges

(1) According to informed sources, Abu Dhabi National Oil Company (ADNOC) plans to reduce crude oil supplies to Asian customers in August and September, with spot market supply set to decrease by about 5%. This production cut only applies to over-the-counter transactions; physical crude oil purchased through the Abu Dhabi Intercontinental Exchange is not affected. (2) The tightening of supply has pushed up the price of the flagship crude oil grade Murban, whose premium over Brent crude oil futures neared $7 per barrel this week. (3) The main reason for the supply reduction is ADNOC's scheduled maintenance operations at onshore oilfields in Abu Dhabi.