ADNOC allocates full term supplies to Asian buyers for December
Abu Dhabi National Oil Co. has allocated full-term volumes to most Asian refiners for December loading, contrary to previous months where term allocations were issued with some cuts in volumes, according to market participants surveyed by S&P Global Platts Sept. 27.
Several refiners in China, Taiwan, India and Japan confirmed receiving their term crude supplies from the producer without any reductions, sources told Platts.
ADNOC could not be reached for a comment on the matter.
ADNOC has raised supplies to term buyers in recent months. Term allocation for October and November supplies saw a cut of only 5% each compared with September, when allocations were cut by 15%.
Murban exports by ADNOC are expected to rise, starting with 1.175 million b/d in October 2021 and increasing gradually to a high of 1.437 million b/d in August 2022, according to an ADNOC report.
Amid an increase in oil supplies by the OPEC+ group, Middle Eastern producers have been raising supplies, sources said.
“Export volumes of many grades from Middle East now in a 2-year high,” a trader with a North Asian refinery said.
Trade sources will track the OPEC+ meeting, which is scheduled on Oct. 4 to discuss about the strength in energy markets.
The group of oil producers are expected to stick to their original plan of adding 400,000 b/d to the market in November, traders said.
However, the recent rally in oil prices could prompt the group to increase the amount of oil being infused into the market, a crude oil trader in Singapore said.
Meanwhile, spot buying appetite could continue to remain tepid despite soaring gas prices weighing on winter season demand for many Asian buyers while spread of the pandemic could further pressure sentiment, traders said.
“Our demand [in October] will be same level with last month [September],” another trader with a North Asian refinery said.