UAE's Adnoc raises Asia crude supply to full volumes

Abu Dhabi National Oil Co (Adnoc), the main exporter for Opec member the United Arab Emirates, will supply full contractual crude oil volumes to Asia in March for the first time since May 2011, industry sources said on Wednesday.

Adnoc has notified Asian buyers that it will supply the four main grades of Murban, Lower Zakum, Umm Shaif and Upper Zakum at contractual volumes in March. It cut supplies by 5-10 per cent for each of the four grades for February.

The move may reflect Adnoc's higher output to replace crude oil imports from Iran, one source said.

Japan and South Korea are among the big Asian buyers under pressure from the United States to cut back on Iranian oil imports to secure a waiver from a US law imposing sanctions on financial institutions that trade with Iran's central bank.

Adnoc also gave buyers the option of asking for all grades' cargoes to be 5 per cent more or less than contracted volumes, the first such move since May 2011, the sources said.

Until last month, buyers could not ask for additional volumes above the allocated volumes of grades whose supplies were cut.

Murban is the main export grade for the UAE. Adnoc produces most of the country's crude.