UAE's ADNOC Raises August Oil Prices

Abu Dhabi National Oil Co (ADNOC), the state-owned producer, raised prices for all four of its crude grades for deliveries made in August by more than 2%. The price for Murban crude, the largest export grade, rose to US$74.60 a barrel, ADNOC said yesterday in a statement.

The price for crude sold under long-term contracts and lifted last month is 2.2% higher than in July, according to data. ADNOC raised the Upper Zakum crude price 2.3%, to US$72.80 a barrel. Umm Shaif crude increased the most, rising 2.4% to US$74.15 a barrel, ADNOC said.

Lower Zakum crude shipped in August cost US$74.35 a barrel, 2.2% higher than in July, according to the price list. The UAE, holder of about 7% of the world's oil reserves, was the fourth-largest producer in the Organisation of Petroleum Exporting Countries, pumping 2.32 million barrels of crude a day in August, according to a survey.

The federation, which exports most of its crude to Asia, has the capacity to produce about 2.8 million bpd, Oil Minister Mohammad Al Hamli said on 2 March 2010.

Crude oil gained less than 1 per cent in August trading on the New York Mercantile Exchange, rising to an average price for the month of US$76.67 a barrel. Abu Dhabi bases its oil prices in part on global markets and on futures trading in and demand for its own crude.

ADNOC will cut September shipments of Murban and Lower Zakum grades to customers, according to the list of monthly allocations published 26 July 2010. The supply of Murban crude will be cut 20% from contracted amounts compared with a 10% reduction in August, ADNOC said in a 26 July 2010 statement.

Allocation cuts in Umm Shaif and Upper Zakum will be narrower in September than in August. ADNOC said it was reducing shipments in accordance with OPEC's decision to limit output. - Gulf News