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Abu Dhabi set to raise December crude supply.

TOKYO: Abu Dhabi told Asian lifters that it will supply crude at full volumes for December, up sharply from next month when its offshore oilfields are on maintenance, and has offered additional Murban, in line with Opec's move to boost supply.Abu Dhabi, the main oil producer in Opec-member the UAE, will supply higher volumes for December than for next month when supplies of offshore crudes Umm Shaif, Lower Zakum and Upper Zakum will be cut by 600,000 barrels per day (bpd) due to oilfield maintenance, industry sources said yesterday.

"The total supplies from Adnoc will be at full contracted volumes," said a trader with a lifter, who buys offshore crudes in addition to Murban crude. The company will not get any offshore crudes next month, the trader said.

Light sour Murban crude, the UAE's biggest stream, coming from several onshore fields, is not affected by maintenance and Abu Dhabi National Oil Company (Adnoc) will supply full contracted volumes for December, as next month, lifters and traders said.

But Adnoc has also offered additional supplies of Murban crude to some lifters due to high inventories and possibly rising production, sources added. "Murban stocks are high. I think they are pushing up production," a trader said.

At least one term lifter declined the offer to take additional volumes, and will keep its Murban supplies steady at full contracted volumes for December.

This is believed to be the first time that the Middle East producer is offering to supply additional volumes since Opec implemented a 1.2 million-bpd cut in November last year.

The offer of higher volumes comes as OPEC ramps up output by 500,000bpd from November 1 amid record-high prices.

But the increase was deemed too small to ease prices, which jumped to records yesterday with London Brent rising briefly above $89 and New York NYMEX above $92, due to the record-low dollar, rising political tensions in the Middle East and supply shortfalls ahead of winter.

Abu Dhabi's offer to supply more crude comes after Saudi Arabia said earlier this month it would raise supplies to Asia by a tenth for next month, the first time in a year that the Opec kingpin gives full allocations to customers in this region.

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Publication:Gulf Daily News (Manama, Bahrain)
Date:May 1, 2008
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