Murban Crude Jumps to 4-Month High as ADNOC Cuts Asian Supply
The price of Murban Crude, the flagship grade of the United Arab Emirates, has surged to a four-month high. ADNOC, the UAE's national oil company, plans to cut its immediate crude shipments to Asia by about 5% in spot tenders for this month and next due to maintenance on some of its onshore fields in Abu Dhabi.
This move will reduce supply in Asia, where Murban Crude is currently trading at a nearly $7 per barrel premium over Brent crude futures, which are valued at $97.75 a barrel. This premium has not been seen since the beginning of April, when supply constraints from the Middle East hit their peak with the closed Strait of Hormuz.
Since June, ADNOC has sold an estimated more than 100 million barrels in spot tenders as it pushes to sell increased crude volumes to international markets. The UAE has managed to boost its oil exports to pre-crisis levels as early as June by finding workarounds to the blockage at the Strait of Hormuz.