SINGAPORE/DUBAI - Abu Dhabi National Oil Company (ADNOC) will reduce crude oil supplies to term buyers by 25% in November as part of its commitment to the OPEC+ deal, a notice seen by Reuters showed and sources with knowledge of the matter said.
The 25% supply cut will apply to all four ADNOC crude grades - Murban, Umm Lulu, Das, and Upper Zakum, according to the notice from ADNOC, the main oil producer of United Arab Emirates (UAE).
An ADNOC spokesman confirmed the 25% reduction plan.
ADNOC deepened its export cuts to 30% for term buyers in October from cuts of 5% between July and September.
In August the UAE pumped 2.693 million barrels of oil per day, above its OPEC+ quota, sources told Reuters.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, jointly known as OPEC+, are cutting production by 7.7 million barrels per day to support prices, after cutting by 9.7 million bpd from May to July.
A OPEC+ ministerial panel known as the JMMC, which monitors compliance with the cuts, is due to meet on Thursday and the poor conformity with the cuts by the UAE, along with other OPEC+ members, and a compensation mechanism will be discussed during the meeting, OPEC+ sources told Reuters.
(Reporting by Shu Zhang in Singapore and Rania El Gamal in Dubai; editing by Louise Heavens and Jason Neely) ((email@example.com; +65-6870-3549; Reuters Messaging: Twitter @shuzhang4))