Review of OPEC Member Counties: The UAE.

The spot price of Dubai, a sour crude which is used as a marker for similar grades, has traded at a premium over Dated Brent through most of the months since mid-1998. When it was lower than Dated Brent the discount was quite narrow. Dubai's spot price averaged $12.82 in October and $11.79 in November, whereas the average for Brent in prompt trading was $12.63 in October and $11.05 in November. The main reason for this was the relatively higher prices of high sulphur fuel oils and sour crudes in Asia than in west of Suez markets. But liquidity in the spot market for Dubai has declined further as the volume of production has fallen.

Abu Dhabi is the only member-state of the UAE to stick to OPEC decisions. Abu Dhabi has a capacity of more than 2.5m b/d and, under the OPEC accord of June, is committed to limit oil production to 2.157m b/d. This has been the level of its output since June. The level would be maintained until end-1999, in accordance with an agreement reached by the GCC oil ministers in Abu Dhabi on Dec. 8, or until Saudi Arabia and fellow GCC members agree with the other OPEC states to lower production further.

The Abu Dhabi National Oil Co (ADNOC) has become a holding concern. After a restructuring announced on Oct. 12, the group now has eight directorates functioning as autonomous divisions. Of these five operating directorates were created in October, with each in charge of a sector and subsidiary companies (see detailed survey of Abu Dhabi to be published in January 1999, Vol. 52. Surveys of the other OPEC members will be serialised in the subsequent months and in Vol. 53).