DUBAI: The United Arab Emirates is cutting crude oil supplies to customers in June by 10% as part of its agreement with OPEC to curb production. An Abu Dhabi National Oil Co. (ADNOC) spokesman confirmed the cut late last week to Bloomberg. The state-owned producer cut supplies for May by 7%, Kallanish Energy finds. The UAE, the fourth-biggest producer in the Organization of Petroleum Exporting Countries, will exceed its commitment to OPEC’s production cuts, with maintenance scheduled on fields through May, Energy Minister Suhail Al Mazrouei said earlier in April. OPEC agreed to production limits for most of its members at a meeting in November, and brought 11 other nations, including Russia, on board in December.
The UAE’s average compliance with the agreement year-to-date is 51%, the International Energy Agency said in an April 13 report. Saudi Arabia’s Minister of Energy and Industry, Kahlid Al-Falih, concluded last weekend a tour of central Asian oil producing nations, including Kazakhstan and Azerbaijan. The nations, along with Saudi Arabia, agreed it’s important to abide by the agreement, Al-Falih said on his Twitter account, Bloomberg reported. Al-Falih is talking with many OPEC members to achieve consensus before their next meeting, slated for May 25, in Vienna, OPEC Secretary-General Mohammad Barkindo said in a Bloomberg TV interview. The 24 oil producers that agreed to cut production are seeing progress, Barkindo said in Paris last week. The land-based inventory surplus in developed economies declined from February to March by about 39 million barrels (MMBbl), he said.
