Abu Dhabi cuts February crude allocations

29 December 2010

The move follows Opec’s decision to reduce production

Abu Dhabi National Oil Company (Adnoc) will cut crude allocations to its clients by between 10 and 15 per cent in February 2011, according to the state-run Emirates News Agency (Wam).

Cargoes of crude from the Murban and Lower Zakum fields will be cut by 10 per cent, while allocations from the Umm Shaif and Upper Zakum fields will be reduced by 15 per cent in February.

According to Wam, the move “follows the Organisation of the Petroleum Exporting Countries’ (Opec) decision to reduce production”.

However, the international oil producers group decided to maintain current production levels after their meeting in Vienna on 11 December.

“With the OECD countries still facing lower industrial output, lagging private consumption as well as persistently high unemployment and with ample spare capacity throughout the oil supply chain, the cartel agreed to maintain current oil production levels,” the group announced. 

The 11 members pumped an average of 26.7 million barrels a day in November, 80,000 b/d lower than October levels, but still 1.85 million b/d more than their 24.845 million b/d target. Iraq is currently not subject to Opec quotas.  

Arab Opec ministers also met in Cairo on 25 December to discuss oil production and prices, although no decision on output was announced. Average prices for the 12-crude basket of exports from Opec member states stood at $90.67 a barrel on 27 December.

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