Abu Dhabi will reduce the transportation of crude oil to Asia!

According to foreign media reports on March 26, some media quoted unnamed people familiar with the matter as saying that the Abu Dhabi National Oil Company (ADNOC) has reduced its crude oil plan to Asia in June by 10-15%.

ADNOC said earlier that it would control supply to Asian buyers at 5-15% in May as part of its production control obligations under the OPEC + agreement. In addition, Asian buyers still have plenty of inventory to profit high prices. The maintenance season for many Asian refineries also helps to control demand.

Interestingly, the news comes before the next OPEC meeting, OPEC will discuss the issue of supply allocation in May. Reuters sources expect the organization to maintain its current production level as demand prospects are more pessimistic after the surge in Europe's newer coat-19 infection.

This week's new situation with the new European crown virus managed to cover the price impact of the container ship's grounding on the Suez Canal, which moved all traffic the blocking point. Earlier this week, despite the news of the blockade raising the oil benchmark, news of an extended blockade in many parts of Europe quickly dampened optimism.

OPEC + will meet next week to discuss the issue of production reduction, which is expected to maintain its current production level. However, as a Reuters source said, the oil market is very fragile unexpected is possible.

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Source: International Petroleum Network