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Murban crude hits four-month high as ADNOC trims Asia spot supply
ADNOC is expected to cut about 5% of spot crude offerings to Asian buyers over the next two months, with the reduction linked to maintenance at onshore Abu Dhabi fields.
Murban Crude, the flagship grade of the United Arab Emirates, jumped to a four-month high this week as reports said ADNOC will reduce near-term crude shipments to Asia, according to OilPrice. ADNOC plans to cut by about 5% the supply it offers in spot tenders to Asian buyers during this month and next.
The lower volumes are attributed to maintenance on some of ADNOC’s onshore fields in Abu Dhabi, OilPrice reported. Murban crude trades at a nearly $7 per barrel premium to Brent crude futures, at $97.75 per barrel.
OilPrice cited Bloomberg data showing the Murban premium to Brent is the highest since early April, when Middle East supply constraints peaked around the closure of the Strait of Hormuz. The Murban grade had traded at a discount to Brent between late April and early August, aside from a brief spike on July 23 tied to US strikes on targets in Iran after negotiations stalled.
Since June, ADNOC has sold an estimated more than 100 million barrels in spot tenders, OilPrice added. The UAE has also boosted oil exports back to pre-crisis levels as early as June by moving crude through and around the Strait of Hormuz.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%