Adnoc to keep May term crude sales steady - Emirates24|7

Adnoc to keep May term crude sales steady

 

Abu Dhabi National Oil Co (Adnoc) has notified lifters in Asia it will supply crude oil at full contracted volumes for May as expected, the same as for April, traders said on Tuesday.


"We got full contracted volumes, the same as for April," the Japanese-based trader with a term lifter said, adding the lifter did not ask for additional volumes.

That is in line with reasoning from the Organization of the Petroleum Exporting Countries (Opec) that oil markets are well supplied and no more oil is needed during the second quarter.

Two South Korean refiners also received full volumes but did not ask for additions.

"We are not looking to increase our import volumes," one South Korean refiner said.

Another lifter in Asia said it would also get full contracted volumes.

Abu Dhabi regularly sells as much as 4 million barrels of extra crude on top of its normal contracted supplies to refiners that request it.

Oil demand normally dims during the second quarter of the year, between the peak heating demand in winter and higher motor fuel use in summer, which has made Opec wary of raising output even as oil prices have surged above $100 a barrel.

Opec last month left output steady despite calls from consuming countries for more oil to halt the record price rally.

The Opec governor of the United Arab Emirates said on Sunday the weakness of the US dollar had amplified the rise in oil prices, which was partly due to speculation and that no more oil was needed.

Oil prices hovered below $101 a barrel on Tuesday, extending hefty overnight losses triggered by an expected recovery in Iraqi crude exports. (Reuters)
 
 
Comments

Comments