ADNOC Boosts Oil Supply to Partners Ahead of OPEC+ Meeting

• ADNOC Onshore partners (including BP, TotalEnergies, CNPC, and others) are entitled to about 40% of Murban production at roughly 2 million barrels per day
• Saudi Arabia is also ramping up production as a contingency plan in case U.S. strikes on Iran disrupt Middle East oil supplies
• Increased Murban supply has pressured spot premiums, which fell below $2 per barrel relative to Dubai quotes for April-loading cargoes

Market Summary: ADNOC Boosts Oil Supply Ahead of OPEC+ Meeting

Key Developments:

Abu Dhabi National Oil Company (ADNOC) is set to increase exports of its flagship Murban crude in April, offering additional volumes to partners in its onshore concession. This move adds to already-ample Middle Eastern oil supply ahead of a critical OPEC+ meeting scheduled for Sunday.

Production Details:

ADNOC Onshore produces approximately 2 million barrels per day of Murban crude. Partners including BP, TotalEnergies, China National Petroleum Corp, Inpex, Zhenhua Oil, and South Korea's GS Energy are entitled to roughly 40% of production. The exact volume increase was not immediately disclosed.

Market Context:

The UAE's production boost coincides with Saudi Arabia also ramping up oil output and exports, part of a contingency plan to offset potential supply disruptions from any U.S. military action against Iran. This comes as OPEC+ is expected to increase oil output by 137,000 barrels per day in April, resuming production hikes after suspending increases during the first quarter.

Price Impact:

The increased Murban supply has already pressured spot market premiums, which dropped below $2 per barrel versus Dubai quotes for April-loading cargoes over the past week.

Market Implications:

The coordinated production increases from major Gulf producers signal efforts to stabilize global oil markets amid geopolitical tensions while potentially pressuring crude prices. The timing ahead of the OPEC+ meeting suggests strategic positioning by member states to manage supply levels and market expectations.