ADNOC makes over 3 million barrel cuts to July Murban crude volumes: sources

Abu Dhabi National Oil Co. has made wide-ranging cuts in volume to several July-loading Murban crude cargoes, multiple trade sources told Platts in the week ending June 20.

The depth of the cuts is understood to differ from cargo to cargo, ranging from 5% up to almost 40%, averaging 20% of forecast exports for the grade by impacted equity holders, according to multiple sources, who spoke to Platts on condition of anonymity. Other trading sources estimated the cuts in the range of 3-4 million barrels, equal to roughly two days of production for the grade.

The cuts are understood to have only affected equity holders, though not all equity holders saw their volumes cut, according to the same sources. Term holders with ADNOC were heard by Platts not to have been affected.

ADNOC declined to comment in an emailed response to detailed questions about the allocation changes from Platts sent on June 19.

The cuts to allocations are not thought to be due to production issues, multiple sources told Platts.

ADNOC said May 31 it would make 1.61 million b/d of its flagship light sour Murban crude available for export by May 2026, down from the 1.76 million b/d it had projected earlier. The announcement keeping more Murban at home came as the grade increasingly trades below heavier crudes like Upper Zakum -- a complete inversion of historical norms.

Produced from 2,000 onshore wells in the UAE, Murban is ADNOC's top crude by volume, accounting for more than 2 million b/d of its total production capacity of about 4 million b/d. Murban crude barrels traded through the ICE Futures Abu Dhabi exchange are understood not to have been affected.

ADNOC has made a concerted effort to boost Murban export volumes by revamping its giant Ruwais refinery to run other domestic crudes. Meanwhile, the Asian market has seen an influx of crudes similar to Murban in quality, such as WTI Midland and CPC Blend.