Abu Dhabi to supply extra crude

Abu Dhabi to supply extra crude
Reuters Published: November 29, 2007, 00:20


Singapore: Abu Dhabi will supply full term volumes of crude oil to its Asian customers for January and additional barrels to at least three buyers to meet winter demand, lifters said on Wednesday.

This is only the second month since November 2006 that Abu Dhabi, the main producer in Opec-member the UAE, is supplying additional volumes, but the move may not herald the organisation's plan to lift output again when it meets next week.

"We received the notice. It is full volume and a small incremental," one term lifter said.

Abu Dhabi occasionally sells extra crude to its term buyers in Asia, its main export market, although the exact volumes to be supplied this time were not immediately known.

Opec is meeting in Abu Dhabi on December 5 and is under pressure to supply more crude to world markets to stop prices from breaching new records and put further strain on the global economy.

While top Gulf Opec officials have expressed deep concern at prices threatening to top $100, they reiterated that markets were well supplied and steered clear of saying whether Opec would raise production at its policy meeting.

The incremental Abu Dhabi supplies for December came after a sharp cut-back in November due to offshore oilfield mainten-ance, and were in line with Opec's decision to boost daily output by 500,000 barrels from November 1, which failed to stop prices from rocketing.

Written notice

Two lifters confirmed receiving written notice that they would get full term volumes for a second month in January.

Four lifters said they had not requested extra barrels, while three others had asked for additions, leaving it unclear whether Abu Dhabi will supply more crude to Asia for January than for December.

But unlike the December barrels, Adnoc did not not actively offer additional volumes for January. It may also not be able to satisfy all requests for additional crude, with one lifter saying it had sought a full additional 500,000-barrel cargo but received less.