SINGAPORE: The Middle East crude benchmarks softened on Tuesday amid ample supplies despite OPEC's pledges to cut production from January.
Abu Dhabi National Oil Company (ADNOC) on Tuesday said it would cut crude supplies by 3-5 percent across its three export grades to meet commitments under an OPEC deal to curb production.
The move is among the first visible indicators that oil markets could be physically tighter next year as the Organization of the Petroleum Exporting Countries (OPEC) and other producers cut output to ease a supply glut and prop up prices.
Still, traders said ADNOC's cut is unlikely to have a large impact on the market as it is within operational tolerance limits and buyers have extra oil from Saudi Arabia and Iraq to replace lost Abu Dhabi supplies.
"I think it's manageable. Many (refiners) received incremental Arab Extra Light in January to cover," said a North Asian refinery official, who spoke on the condition of anonymity.
In a notice to term lifters, ADNOC said it would reduce Murban and Upper Zakum crude supplies by 5 percent and would cut Das crude exports by 3 percent.
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