UAE will continue to cut its oil production to meet OPEC deal obligations, even as a second extension to output cuts is being discussed by officials.
“As part of UAE compliance with the OPEC agreement, ADNOC announced its December crude oil nomination cut,” said UAE Energy Minister Suhal Al Mazroui. “This reflects the UAE’s continued focus on reducing its oil production by 139,000 (barrels per day) as per its OPEC commitment.”
Abu Dhabi National Oil Co (ADNOC) has cut the amount of oil supplies to its customers for December by reducing Murban grade by 15 per cent, Das grade by 10 and Upper Zakum crude by 5 per cent, the energy minister said.
The Organization of the Petroleum Exporting Countries and allied non-OPEC producers including Russia cut output by about 1.8 million barrels per day from Jan. 1, and extended the existing six-month supply cut to end of March 2018.
Saudi Arabia’s Crown Prince Mohammed bin Salman and Russia’s President Vladimir Putin have said they would back another extension of the agreement until the end of 2018.
“We will support anything to stabilise the oil demand and supply,” said Crown Prince Mohammed bin Salman. "The kingdom would support extending the agreement until the end of 2018."
The overall bullish sentiment on extension of a supply cut has driven Brent above $60 per barrel to a two-year high.
OPEC will review policy at a Nov. 30 meeting in Vienna.
Compliance with the cuts among OPEC and other oil producers were over 100 per cent in the past couple of months, a rare level of commitment to supply curbs for the organisation.