UAE Crude Shipments Reduced for International Buyers

UAE Crude Shipments : Abu Dhabi National Oil Co. reduced the volume of oil for its onshore partners by nearly a fifth this month, but the flows will still proceed to a port beyond the all-but-shuttered Strait of Hormuz.

UAE Crude Shipments Cut to Key Global Partners see here

According to those acquainted with the situation, the state-owned oil company informed its equity partners that they will only be able to load 80 percent of their remaining Murban barrels in March. They asked not to be recognised since they are not permitted to speak in public. No specific reason was given.

However, cargoes of the United Arab Emirates’ premier grade petroleum can still be picked up at the port of Fujairah, they said. Previously, the business stated that they would need to be gathered from Jebel Dhanna, a facility located within the Persian Gulf, which would necessitate passing over the strait.

The confrontation between the United States, Israel, and Iran has thrown the global oil market into upheaval, with the International Energy Agency calling the disruption unprecedented. Tehran has launched missiles and drones toward several targets in the Middle East, including the UAE, as well as ships. The Strait of Hormuz, which connects the Persian Gulf to world markets, is virtually blocked.

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With the standoff in its second week, Adnoc’s move follows past instances of Asian refiners being unable to pick up March-loading supplies. Some purchasers’ Middle East orders have been cancelled due to a shortage of transportation options, according to merchants acquainted with the situation.

Adnoc controls 60% of the onshore concession, which has the potential to pump approximately 2 million barrels of Murban per day. TotalEnergies SE, BP Plc, China National Petroleum Corp., Inpex Corp., Zhenhua Oil Co., and GS Energy Corp. own the remainder.

Adnoc and Inpex have declined to comment. The five remaining equity partner companies did not reply to calls for comment.

Meanwhile, Adnoc’s trading arm is promoting Murban barrels on the spot market for loading later this month or next, according to Asian merchants. It intends to sell the amounts at prices comparable to the Dubai benchmark, they added.