<article><p class="lead">Abu Dhabi's state-owned Adnoc has told customers that it will extend existing 5pc nomination cuts to September-loading exports of its four main crude grades.</p><p>The reductions will be applied to Adnoc's flagship light sour Murban crude and other light sour grades Das and Umm Lulu, as well as medium sour Upper Zakum. The company similarly put in place 5pc term crude nomination cuts for all its crude exports for <a href="https://direct.argusmedia.com/newsandanalysis/article/2118418">July and August</a>.</p><p>Adnoc's sustained nomination cuts come even as the Opec+ production restraint agreement is due to be relaxed slightly from August. Under that agreement, the UAE pledged to cap its output at 2.446mn b/d until the end of July, but can produce up to 2.59mn b/d over August-December.</p><p>Spot differentials of September-loading Abu Dhabi crudes have come <a href="https://direct.argusmedia.com/newsandanalysis/article/2124915">under pressure</a> in July as the pace of the demand recovery slows and refining margins in Asia-Pacific remain weak because of concerns over the continued spread of Covid-19 cases.</p><p>Adnoc this week added China's state-owned CNOOC as a partner at two of its <a href="https://direct.argusmedia.com/newsandanalysis/article/2126672">offshore oil field concessions</a>. Adnoc maintains the controlling 60pc equity stake in both concessions. It is working to boost its overall capacity to 4mn b/d by the end of this year, from around 3.5mn b/d currently, and wants to reach 5mn b/d by 2030.</p><p class="bylines">By Fabian Ng</p></article>
