Crude/Condensate: May 24-28: ADNOC narrows Aug supply cuts
In the trade of Abu Dhabi grades, ADNOC on Wednesday notified its term buyers of supply cuts for August-loading. Several market players said that ADNOC slashed term supplies by 5% for all grades from contractual volumes. The scale of supply cuts eased sharply from the 20% reduction for all grades for July-loading. The move came as the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC, or OPEC plus, decided to ease supply curbs gradually from May to July.
Meanwhile, Indonesia's state-owned Pertamina was said to have purchased Algeria's Saharan Blend in its July to August arrival tender closed on Thursday. The seller was said to be French Total and the price was heard at a premium of around $3.00 to Dated Brent on a CFR basis. Pertamina was also said to have procured Nigerian Escravos, but the details about the seller and the price were unknown at this stage.
In the trade of Australian condensates, Indonesia's Pertamina bought August arrival NWSC for the country 's petrochemical TPPI as reported. It later turned out that the seller was a major seen as British BP. The price was at a premium of low-$1s to DTD Brent on a CFR basis when the deal changed hands. In the trade of other regional condensates, July-Loading Wheatstone cargo was uncommitted as reported. "Under the situations, if the exports of Iranian condensates resume, the market would fall further," said a trader in Singapore.