SINGAPORE – Abu Dhabi National Oil Company (ADNOC) plans to cut buyers’ term crude supply nominations by 5% in April versus cuts of 10%-15% in March, sources familiar with the matter said on Tuesday.
Two Asian refiners confirmed that they were notified of a 5% volume cut for the medium sour grade Upper Zakum, while trade sources said the smaller cut also applies to three other ADNOC grades – Murban, Das and Umm Lulu.
The move comes ahead of a March 4 meeting at which the Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, are expected to discuss a modest easing of oil supply curbs from April.
Three OPEC+ sources said an output increase of 500,000 barrels per day from April looked possible without building up inventories, although updated supply and demand balances that ministers will consider at their March 4 meeting will determine their decision.
Last month, ADNOC notified clients that March term supplies for Upper Zakum crude would be cut by 15%, sources said. Term supplies for other grades were reduced by 10%.
ADNOC did not immediately respond to a request for comment.
(Reporting by Shu Zhang and Florence Tan in Singapore, Rania El Gamal in Dubai, Nidhi Verma in New Dehli; Editing by Christian Schmollinger and Tom Hogue) ((firstname.lastname@example.org; +65-6870-3549; Reuters Messaging: Twitter @shuzhang4))