Abu Dhabi National Oil Company (ADNOC) has cut prices for all crude grades in August to ensure that its oil remains competitive in Asia after its light grades traded at the widest discounts since 2015 last month.
ADNOC set the August retroactive official selling price (OSP) for its benchmark Murban crude for sale to Asia at $75.05 per barrel, the company said on Wednesday.
This puts the August Murban OSP’s premium to Dubai quotes at $2.56 a barrel, down 62 cents from the previous month.
For Das, another light crude grade, the premium of its August OSP to Dubai quotes was cut by 67 cents from July to $1.96 a barrel.
Last month, Middle Eastern light crude grades sold at discounts of as wide as 70 cent to 75 cents a barrel because of uncompetitive OSPs and stiff competition from arbitrage supplies.
The premium of the August OSP for Upper Zakum to Dubai quotes fell 22 cents compared with the previous month to 51 cents a barrel, in line with spot trade levels last month.
The price cuts were reasonable, several traders in Asia said.