Five informed sources said on Monday that Abu Dhabi National Oil Company (ADNOC) will cut its December crude supplies by 5% to some futures customers in Asia, but will supply the contractual supplies in full in January.
The sources added that the company has applied the operating indemnity clause, which allows cargo quantities to be adjusted by 5%, in increase or in decrease, for logistical reasons.
ADNOC exported most of its crude oil in Asia, and includes crude oil grades produced by Murban, Umm Lulu, Das and Upper Zakum.
The cut comes as the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, began cutting production by two million barrels a day from November in an effort to prop up prices.
“The production cut should be reflected in the market,” said a Singapore-based trader, “it stands to reason that oil producers would want to delay selling at such prices.”
Brent and West Texas Intermediate crude fell to their lowest levels in 11 months on Monday.
Spot premia for Middle East, Oman, Dubai and Murban crudes eased this month as market sentiment deteriorated amid fears of oversupply. OPEC+ will meet in Vienna on 4 December.
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