By Ed Attwood
UAE’s national oil company confirms it will comply with a recent OPEC directive and make a cut in March.
The Abu Dhabi National Oil Company (ADNOC), one of the world’s largest oil companies, has confirmed a production cut for March in line with a recent OPEC decision.
According to UAE news agency WAM, ADNOC said the rate of production cut from its various sources will be as follows: Murban 10 percent, Lower Zakum 10 percent, Umm Shaif 10 percent, while the Upper Zakum will have a 15 percent cut.
In addition, ADNOC states that Murban, Lower Zakum, Umm Shaif and Upper Zakum cargoes will be treated at Max/-5 percent tolerance loading basis for all its clients.
The move is part of a delicate balancing act – masterminded by OPEC - that will see state revenues drop, but should bolster the price of the UAE’s biggest export.
While Iraq is currently exempt from OPEC quotas, the country is raising its exports significantly, which the organisation believes could depress the oil price.
Local news agency Aswat Al Iraq said that oil revenues were up to $4.499 billion in December.