UAE oil price drops to six-month low
According to webangah News Agency, UAE’s Murban crude oil price has reached its lowest level in six months due to increased supply. The UAE has boosted production following OPEC+ alliance’s decision to accelerate output increases and compete with US shale oil.
Demand for Abu Dhabi’s light crude grade has risen among Asian buyers due to its lower price. A record 10 million barrels of Murban crude traded this month on the S&P global Platts market. The depressed Murban prices are putting pressure on US West Texas Intermediate crude in Asian markets.
The weakening price of this grade – which constitutes two-thirds of Abu Dhabi National Oil Company’s (ADNOC) production - is also affecting the Middle East benchmark that prices over 14 million barrels per day of Asia-bound exports.
The OPEC+ alliance, comprising OPEC members and allies including Russia, agreed to increase production by approximately 1 million barrels per day during April, May and June. UAE’s oil output will reach 3.09 million bpd in June, up from May’s 3.02 million bpd.
ADNOC expects Murban exports from June through August to exceed both May’s 1.65 million bpd and the projected 1.7 million bpd threshold.
According to informed sources familiar with UAE production plans, Murban output will increase by 200,000 bpd in july, reaching 2.1 million bpd.
Murban futures prices fell below $60 per barrel in early May for the first time since 2021.
