Abu Dhabi said on Friday that it would price its oil shipments more early, days after joining Saudi Arabia in pledging to increase crude supplies to a record level.
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High in April, which contributed to a sharp drop in the market.
The two Gulf producers announced production increases following a confrontation with Russia after they refused to cooperate with deepening production cuts, as suggested by the Organization of the Petroleum Exporting Countries.
The Abu Dhabi National Oil Company (ADNOC) reduced the official selling price of its main crude, Murban in April shipments, by $ 4.63 a barrel, to reach $ 2.75 a barrel below the record price of Platts Dubai compared to $ 1.88 a barrel above it in March shipments.
ADNOC said in a statement that in light of the “unprecedented” market conditions, and in order to provide a better future vision for customers, it decided to announce prices in advance of crude oil sales for March and April 2020.
Saudi Arabia already cut the prices of all its raw materials for April in shipments to various destinations.
Oil prices have nearly halved since the start of the year, amid fears that OPEC members may drown the market with crude in their battle with Russia at a time when there is likely to be a sharp decline in demand due to reduced fuel consumption due to the Corona virus pandemic.
ADNOC described Friday’s announcement as a temporary measure to allow customers to better plan their crude purchases in light of the current market situation.
She added that she is still committed to her plans to trade Murban on a new independent stock exchange, once it has obtained the necessary regulatory approvals.