UAE to Cut Oil Shipments as It Aims to Support OPEC+ Prices

The United Arab Emirates (UAE), a leading member of the OPEC+ alliance, is preparing to reduce oil shipments starting early next year. This move is part of a collective effort by OPEC+ to tighten compliance with production quotas to support oil prices.

The state-owned Abu Dhabi National Oil Company (Adnoc) has announced that it will cut allocations of crude oil cargoes to certain Asian customers. It is noted that there could be a reduction of up to 230,000 barrels per day across various grades of crude oil. This information comes from companies that have contracts to receive these shipments and wish to remain anonymous due to the proprietary nature of the transactions.

Market participants have been closely monitoring UAE's oil exports lately, driven by the efforts of Abu Dhabi and other OPEC members to stabilize falling oil prices. Recent market data shows that Brent crude oil futures have fallen by 16% since the beginning of July, currently trading at approximately $74 per barrel.

While data compiled by OPEC indicates that the UAE has largely adhered to its production limit of 2.912 million barrels per day, there are doubts among some traders. Estimates released by the International Energy Agency in Paris suggest that the UAE's actual production may be significantly above the quota.

So far, Adnoc has not responded to requests for comments on the matter.