Murban Crude, the UAE's flagship oil grade, reached a four-month high this week. This surge is attributed to ADNOC's plan to reduce crude shipments to Asia by approximately 5% for the current and upcoming months, driven by maintenance at onshore fields.
The reduction in Murban Crude supply to Asia tightens the market, pushing prices higher and potentially impacting global energy costs. It highlights the UAE's strategy to manage its production and exports following its departure from OPEC.
The price of Murban Crude, the flagship grade of the United Arab Emirates, has risen to a four-month high amid reports that ADNOC, the UAE's national oil company, will reduce its immediate crude shipments to Asia. Sources indicate ADNOC plans to cut supply by approximately 5% in spot tenders to Asian buyers this month and next. This reduction is attributed to maintenance activities on some of ADNOC's onshore fields in Abu Dhabi. This week, Murban Crude is trading at a premium of nearly $7 per barrel over Brent crude futures, reaching $97.75 a barrel, the highest premium since early April. The UAE has managed to increase its oil exports to pre-crisis levels as early as June, employing strategies such as shuttling crude to larger vessels outside the Strait of Hormuz and utilizing onshore pipelines to bypass the chokepoint.