ADNOC lowers August crude prices, offers alternative pricing for Fujairah-loading
- Oil has since rebounded as renewed US-Iran attacks revived concerns over disruption
The Abu Dhabi National Oil Company has set the August official selling price of its benchmark Murban crude at $80.01 a barrel, it said on Monday, down from $101.48 a barrel for July.
The lower OSP reflects a sharp decline in benchmark oil prices after an interim US-Iran peace deal eased concerns about disruption of supply through the Strait of Hormuz.
Oil has since rebounded as renewed US-Iran attacks revived concerns over disruption.
ADNOC said it would offer customers an alternative delivery option for offshore crude grades on a free-on-board, or cargo loaded at port, and ship-to-ship basis at Fujairah.
Under the scheme, cargoes will be priced against the August Dubai benchmark, with a premium of $1 a barrel for Umm Lulu crude and $0.80 a barrel for Das and Upper Zakum crude.
The change applies to customers with long-term contracts.
ADNOC has sold more than 70 million barrels of spot Upper Zakum, Das and Umm Lulu, mostly on a ship-to-ship basis from Fujairah in tenders between June and August.
The actual sales volume is likely to be higher because of additional sales outside tenders.
Those three grades are produced in Gulf fields and exported through the Strait of Hormuz on ADNOC’s shuttle fleet.
The UAE raised its crude output to near record highs above 3.8 million barrels per day in June after it quit OPEC to escape production caps.
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