UAE to Cut Oil Shipments as OPEC+ Aims to Bolster Prices

The United Arab Emirates (UAE), a prominent member of the OPEC+ alliance, is set to reduce oil shipments starting early next year. This move is part of a collective effort by OPEC+ to enforce stricter adherence to production quotas, with the goal of supporting oil prices.

The state-owned Abu Dhabi National Oil Co. (Adnoc) has informed some Asian customers that it will decrease the allocation of crude oil cargoes. The reductions are reported to be up to 230,000 barrels per day across various crude grades. This information comes from companies that have contracts to receive these shipments, who have requested anonymity due to the private nature of the transactions.

Market participants have been monitoring the UAE's oil exports with heightened attention recently. This scrutiny is due to efforts by Abu Dhabi and its fellow OPEC members to stabilize declining oil prices. According to recent market data, Brent crude futures have seen a 16% drop since early July, now trading at around $74 per barrel.

Despite OPEC's compiled data indicating that the UAE has largely complied with its production limit of 2.912 million barrels per day, there is skepticism among some traders. The International Energy Agency in Paris has released estimates that suggest the UAE's actual production may have been considerably above the quota.

As of now, Adnoc has not provided a statement in response to requests for comment on the matter.

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Source: Investing.com