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Abu Dhabi National Oil Increases by 2% Prices of All Crude Types in August
Abu Dhabi National Oil Co., the state-owned producer, raised prices for all four of its crude grades for deliveries made in August by more than 2 percent.
The price for Murban crude, the largest export grade, rose to $74.60 a barrel, the producer, based in the United Arab Emirates’ capital, said today in an e-mailed statement. The price for crude sold under long-term contracts and lifted last month is 2.2 percent higher than in July, according to Bloomberg data.
The company, known as Adnoc, raised the Upper Zakum crude price 2.3 percent, to $72.80 a barrel. Umm Shaif crude increased the most, rising 2.4 percent to $74.15 a barrel, Adnoc said.
Lower Zakum crude shipped in August cost $74.35 a barrel, 2.2 percent higher than in July, according to the price list.
The U.A.E., holder of about 7 percent of the world’s oil reserves, was the fourth-largest producer in the Organization of Petroleum Exporting Countries, pumping 2.32 million barrels of crude a day in August, according to a Bloomberg survey. The federation, which exports most of its crude to Asia, has the capacity to produce about 2.8 million barrels a day, Oil Minister Mohamed Al-Hamli said March 2.
Cutting Shipments
Crude oil gained less than 1 percent in August trading on the New York Mercantile Exchange, rising to an average price for the month of $76.67 a barrel. Abu Dhabi bases its oil prices in part on global markets and on futures trading in and demand for its own crude.
Adnoc will cut September shipments of Murban and Lower Zakum grades to customers, according to the list of monthly allocations published July 26. The supply of Murban crude will be cut 20 percent from contracted amounts compared with a 10 percent reduction in August, Adnoc said in a July 26 statement. It will limit shipments of Lower Zakum crude by the same amount.
Allocation cuts in Umm Shaif and Upper Zakum will be narrower in September than in August. Adnoc said it was reducing shipments in accordance with OPEC’s decision to limit output.
Some producers, like Saudi Arabia and Iraq, announce price formulas as a premium or discount applied to a benchmark to determine the cost of oil sold in coming months. Abu Dhabi announces prices for crude lifted the previous month based on market conditions, demand and producer and exchange prices.
To contact the reporters on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net; Ayesha Daya in Dubai at adaya1@bloomberg.net.
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