By Bernd Debusmann Jr
The move follows a similar decision in nearby Saudi
The Abu Dhabi National Oil Company (Adnoc) has lowered the price of its Murban crude by $11.70 per barrel to $56, the company said in a statement sent to clients.
The move follows a similar decision in nearby Saudi Arabia to offer discounts to buyers in the wake of the collapse of the Opec+ pact.
In January, Adnoc had set the price of Murban crude at $67.80 per barrel.
“Adnoc has always set a fair and reasonable retroactive price for its crude that is consistent with market conditions,” the statement said. “We can assure our customers that this practice will continue.”
In Saudi Arabia, Saudi Aramco announced that it would reduce its selling price to Asia by $4 to $6 per barrel.
The kingdom plans to increase production to 10.5 million barrels per day after the Opec and non-Opec members of Opec+ failed to come to an agreement that would have resulted in an addition 1.5 million bpd cut from the world’s supply.
On Monday, oil prices fell 31 percent, the steepest decline seen since the Gulf War in 1991.