ADNOC cuts October Murban OSP by 7.5%, Upper Zakum diff at minus $1.85/b

Quantum Commodity Intelligence - Abu Dhabi National Oil Co. (ADNOC) has cut Official Selling Prices (OSPs) for October-loading crude, with its flagship Murban grade set at $98.06/b, down almost 7.5% from the September OSP of $105.96/b.

The Murban OSP, priced at the average settlement of ICE Futures Abu Dhabi (IFAD) Murban contract during August, was down 7.45%, following the selloff across the oil complex amid concerns over demand destruction.

The light sweet grade maintained a healthy premium over the Middle East medium sour Dubai crude, which averaged $96.59/b, according to Quantum data.

Medium sour Upper Zakum was set at $96.21/b, a $1.85/b discount to Murban versus -$3/b for September.

Upper Zakum is a key medium sour grade for Asia, regularly setting the benchmark Dubai assessment as the lowest of the five 'Dubai basket' grades.
 
Das crude was set at -$1.10/b versus -$0.80/b last month, while Umm Lulu was at parity to Murban versus +$0.10/b for September.

Meanwhile, ADNOC has informed its term customers they will receive full allocations in November as the UAE continues to ramp up production under OPEC+ quotas.

Last month Energy Intelligence reported Adnoc and the Intercontinental Exchange (ICE) were mulling the potential launch of a second futures contract based on Upper Zakum.

The sour-crude Upper Zakum listing is under consideration as a complimentary contract to the existing light sweet Murban, the report said, citing sources familiar with the matter.