Adnoc increases Murban production
Abu Dhabi National Oil Company (Adnoc) has started ramping up Murban's output by 200,000 barrels but had not yet committed all buyers the additional production, traders said.
They said Abu Dhabi allocations of March-loading crude would be full and additional allocations could easily exceed four million barrels as Murban's output continued to increase.
Adnoc had yet to notify all its customers but several lifters across Asia said they had been allocated the extra volumes requested, prompting expectations that other refiners waiting for official notification would also get the requested volumes.
Total additional volumes could reach five million barrels, traders said, more than in the previous.
The release of the extra volumes may not have much impact on the market for March-loading crude with most cargoes already cleared but it could depress the April market as refiners may avoid the spot market and request more additional term volumes instead.
Adnoc usually has field maintenance in spring and some sellers have pinned their hopes on lower volumes available for April.
A survey has showed global oil demand was forecast to grow at 1.5 million bpd in 2006.
Non-Opec oil suppliers will meet most of that demand, adding about 1.3 million bpd of new oil output to world markets.
Almost simultaneous rebounds by economies worldwide in the past two years has led to a surge in oil consumption, particularly in China and the US, and is expected to continue this year.
US Energy Secretary Sam Bodman said recently that he had told Opec ministers that the market needed more oil, not less, but several officials – including Opec president Edmund Daukoru – have said they see little need to restrain output.
