The United Arab Emirates (UAE), an important member of the OPEC+ alliance, is preparing to reduce its oil shipments from the start of next year. This decision is part of a collective effort by OPEC+ to enforce production quotas more strictly, with the aim of supporting oil prices.
Abu Dhabi National Oil Company (Adnoc) has informed some Asian customers that it will reduce the allocation of crude oil cargoes. The reductions would be of the order of 230,000 barrels per day for different qualities of crude. This information comes from companies with contracts to receive these deliveries, who have requested anonymity due to the private nature of the transactions.
Market participants have recently paid increased attention to UAE oil exports. This oversight is due to efforts by Abu Dhabi and its OPEC partners to stabilize falling oil prices. According to the latest market data, oil futures have seen a 16% decline since the beginning of July, currently trading around $74 per barrel.
Although data compiled by OPEC indicates that the UAE has largely met its production limit of 2.912 million barrels per day, some traders remain skeptical. The International Energy Agency in Paris has published estimates suggesting that the UAE’s actual production may have been significantly higher than the quota.
At this time, Adnoc has not provided a statement in response to requests for comment on this issue.
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