ADNOC turns down requests for additional August+September crude – sources

Quantum Commodity Intelligence – Abu Dhabi National Oil Co has turned down requests for additional cargoes loading in either August or September, according to market sources Friday who have spoken to both ADNOC officials and refinery sources that made the requests.

ADNOC turning down pleas for additional cargoes may help alleviate tensions between the UAE and Saudi Arabia after the recent standoff on the OPEC+ proposal to increase production and the row over quotas going forward.

Earlier in the week, the Wall Street Journal reported that the United Arab Emirates wants to maximise crude revenues while demand is still healthy, prompting speculation that output hikes were imminent.

"UAE will hold back, they don't want to break the current agreement," said one source. The current OPEC deal runs until April 2022.

As it stands, OPEC+ production is set to remain unchanged in August compared to July output levels, unless the OPEC+ proposal to add 400,000 bpd is ratified.

ADNOC had informed its term customers of supply cuts for its Murban, Das Blend and Upper Zakum crude oil grades for September-loading cargoes by around 15%.

This is deeper than cuts of around 5% that ADNOC will apply to August-loading term supplies, while ADNOC cut July term volumes by around 20%.

Middle East crude oil benchmarks Dubai and Oman, both medium sour crudes, retreated in the week ending July 9, even after a strong rebound on Friday helped to pare earlier losses.

Dubai cash for September delivery was assessed Friday at $73.00/b (1630 Singapore time), down from $74.05/b on last Friday's close, a fall of 1.4%, according to Quantum data.

Meanwhile, light sweet Murban for September settled Friday on Abu Dhabi's IFAD exchange at $73.85/b, compared to $75.05/b Friday.

The ICE Brent vs Murban spread was around $0.15/b wider at $0.67/b, while Murban futures vs Oman futures stood at $0.76/b, up around $0.10/b.