UAE's ADNOC keeps Asia crude supply steady in July

UAE’s ADNOC keeps Asia crude supply steady in July

ADNOC has notified Asian buyers that it will supply its four main grades - Murban, Lower Zakum, Umm Shaif and Upper Zakum - at contractual volumes in July, the sources said.

June 5, 2012 11:28 by Reuters

Abu Dhabi National Oil Co (ADNOC), the main exporter for OPEC member the United Arab Emirates, will supply full contractual crude oil volumes to Asia in July, steady from June, industry sources said on Tuesday.

ADNOC has notified Asian buyers that it will supply its four main grades – Murban, Lower Zakum, Umm Shaif and Upper Zakum – at contractual volumes in July, the sources said.

The state-run firm did not immediately reveal whether it would give buyers the option of asking for all grades’ cargoes to be 5 percent more or less than contracted volumes for July.

Last month, ADNOC granted the so-called tolerance to only Upper Zakum crude for June, and did not afford the option to load 5 percent more than the contractual supply of three other grades, one of the sources said.

But the move had no significant impact to the market because the buyers could still get contractual supplies, the source added.

“There was a time in the past when the volumes had been cut by 10 percent and the so-called “plus option” was not granted,” the source said. “Compared with that, this is much better and I’m not concerned about it.”

(Reporting by Osamu Tsukimori; editing by Miral Fahmy)