Adnoc to supply full term crude for February

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Adnoc to supply full term crude for February
Reuters GULF NEWS Published: December 28, 2007, 00:32

Tokyo: Abu Dhabi National Oil Co (Adnoc) will supply full term volumes of crude oil to its Asian customers for February, the same as January, in line with expectations, traders said yesterday.

On top of the contracted volumes, Adnoc is expected to supply additional spot barrels to some lifters upon request for a third straight month, they added.

Adnoc occasionally sells extra crude to its term buyers in Asia, its main export market, though exact volumes to be supplied were not immediately known.

Three lifters had received written notices that they would get full term volumes for a third month in February and did not ask for extra barrels. “It was exactly at the contracted levels,” one source said. “We had been thinking that there would be no cuts.”

Traders said Adnoc was likely to supply additional volumes of light sour Murban crude for February as spot cargoes to some lifters in need, but one said the volumes will be limited.

When lifters decide to take additional spot crude from Adnoc, they buy at the grade’s official selling price without having to pay a premium in the spot market. The spot differentials for middle-distillates-rich Murban crude for February loading have stayed at a premium of around 20-25 cents a barrel to Adnoc, reflecting winter demand.

A trader said Adnoc offered additional offshore Upper Zakum crude to some lifters, but it was not clear whether any lifter accepted the offer.

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