UAE and Saudi boost oil exports as US-Iran tensions mount, sources say
- Oil was trading above $72 a barrel on Friday and close to the highest levels since July
UAE oil producer Abu Dhabi is set to export more of its flagship Murban crude in April, two trade sources said on Friday, adding to signs that top exporters in the Middle East are stepping up supplies just as concern grows that any U.S. strike on Iran may disrupt flows from the region.
U.S. President Donald Trump has said he is considering a strike on Iran to pressure its leaders to agree a deal to curb Tehran’s nuclear programme. The United States has assembled a large military force in the Middle East in recent weeks.
The United States and Iran held indirect talks in Geneva on Thursday. A geopolitical risk premium has built up on oil prices on fears that a conflict will disrupt Middle East supply through the Strait of Hormuz, analysts say.
Oil was trading above $72 a barrel on Friday and close to the highest levels since July.
Oil prices rise 3% as US and Iran extend talks into next week
State-owned Abu Dhabi National Oil Co (ADNOC) offered additional volumes to partners in the country’s onshore concession, the sources said, declining to be identified by name. It was not immediately clear how much extra Murban supply there will be.
Two onshore fields will be shut for maintenance in May, impacting export availability, another source with knowledge of the matter said.
Partners in Murban crude producer ADNOC Onshore, which include BP, TotalEnergies, China National Petroleum Corp, Inpex, Zhenhua Oil and South Korea’s GS Energy, are entitled to about 40% of production of the grade at about 2 million barrels per day.
ADNOC, CNPC, Inpex, Zhenhua Oil and GS Energy did not respond immediately to Reuters’ requests for comment. BP and TotalEnergies declined to comment.
Bloomberg News reported on the additional Murban volumes earlier on Friday, citing unnamed sources familiar with the plans.
The move by the UAE comes as Saudi Arabia is increasing its oil production and exports as part of the top OPEC producer’s contingency plan in case any U.S. strike on Iran disrupts supplies.
Last year, Saudi Arabia lifted oil exports in June by around 0.5 million barrels per day, shipping more crude to overseas storage, just as the United States attacked Iranian nuclear sites. The plan this year is similar to 2025, according to two sources who spoke to Reuters this week.
The rise in Murban supply has weighed on spot crude premiums that slipped in the past week to less than $2 a barrel to Dubai quotes for cargoes loading in April, Reuters data showed.
Key members of the OPEC+ oil producers’ group, which includes Saudi Arabia and the UAE, meet on Sunday. They arelikely to consider raising oil output by a modest 137,000 bpd for April, OPEC+ sources said this week, after suspending production increases in the first quarter.
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