Abu Dhabi first with Feb OPEC oil output cuts

TOKYO (Reuters) – Abu Dhabi’s state oil firm said on Tuesday it will cut some crude sales in February by 3-5 percent, the first indication of an OPEC member applying new output curbs.

Abu Dhabi National Oil Co. (ADNOC), the main producer in the United Arab Emirates, will reduce supplies of three grades that account for nearly half its production by 3-5 percent below contracted volumes, it said in a statement.

It had supplied customers with full contracted volumes in January, when traders said it complied with OPEC limits by reducing sales on the spot market. ADNOC did not cut sales of its Murban grade, which is more than half its output, for February.

The cuts, if applied equally to ADNOC and to its joint-venture foreign partners in the three fields, should amount to about 40,000 barrels per day (bpd), in line with the UAE’s commitment under a second round of OPEC cuts.

Reuters