Abu Dhabi state energy giant Adnoc has made swingeing reductions in its crude oil production since Opec+ cuts came into force in May. Total output from the UAE – of which Adnoc produces the vast bulk – averaged 3.91mn b/d in April, before dropping sharply to bottom out at 2.34mn b/d in June (MEES, 10 July). Yet so far, Adnoc’s youngest grade, the 38.7°API, 0.7%S Umm Lulu has escaped the cuts.
The Opec+ cuts have now begun to taper (MEES, 7 August) but are due to extend into 2022. With such lengthy limits on output, cuts to Umm Lulu may yet be just a matter of time. (CONTINUED - 590 WORDS)