Abu Dhabi National Oil Company (Adnoc) has announced its crude oil cut for the month of November is in line with the agreement with oil producers.
For November, production cuts will be 15 per cent for the Murban grade of crude, 10 per cent for Das, and 5 per cent for Upper Zakum.
“November nomination cuts reflect the UAE’s continued focus on meeting the 139,000 barrels of oil per day reduction that we committed to Opec,” said the UAE Energy Minister Suhail Al Mazroui.
Members of the Opec and 11 non-Opec members led by Russia are cutting production by about 1.8 million barrels a day to eliminate a global surplus that was depressing oil prices.
The agreement, which initially called for a six-month period, was later extended by another nine months to the end of March 2018. Libya and Nigeria are exempt from the agreement.
Total Opec crude oil production averaged 32.76 million barrels per day in August, a decrease of 79,000 barrels per day over the previous month, according to Opec’s monthly report. Crude oil output increased in Nigeria, while production showed declines in Libya, Gabon, Venezuela and Iraq.
The UAE’s oil production reached 2.9 million barrels per day in August, a decrease of more than 20,000 barrels per day over the previous month.
Brent, the global benchmark is currently trading at $56.79 per barrel while US crude West Texas Intermediate is at $51.67 per barrel.
Crude oil traded higher for a fourth week as improved fundamentals continued to support friendlier investor sentiment towards oil, Ole Hansen, head of commodity strategy at Saxo Bank said in a note.
The US energy market has begun returning to normal after hurricane disruptions, while the Kurdish vote in northern Iraq raised concerns about supply being cut from the oil-rich region.
“Record US exports — if maintained during the coming weeks together with Libya’s intent to boost production by 30 per cent before year-end — risk putting some downward pressure on Brent relative to WTI,” said Hansen.
“In the short term, and baring any escalation in Northern Iraq, the performance this past week has increased the risk of a correction which potentially could see Brent reverse lower towards $54 per barrel.”