Dubai, Murban dip; ADNOC to cut Dec term-supply

Middle East crude benchmarks Dubai and Murban dipped on Monday as rising daily COVID-19 cases in China continued to sour expectations of a fuel demand recovery in the world's biggest crude oil importer.

Abu Dhabi National Oil Company (ADNOC) will cut 5% of the December crude oil supply to some term-lifters in Asia but will provide full contractual volumes in January, five sources with knowledge of the matter said on Monday.

The oil producer cited the operational tolerance clause which allows the adjustment of loading volumes by typically plus or minus 5% for logistical reasons, the people said.

SINGAPORE CASH DEALS

Cash Dubai's premium to swaps dipped 14 cents to $2.20 a barrel.

PRICES ($/BBL)

NEWS

The global oil market is signaling a potential shift, as traders and analysts worry about reduced crude demand and an oversupplied market in the coming months.

The OPEC+ meeting in December will take into account the condition and balance of the market, Iraq's state news agency quoted Saadoun Mohsen, a senior official at the country's state oil marketer SOMO, as saying on Saturday.

A meeting of European Union government representatives, scheduled for Friday evening to discuss a Group of Seven (G7) proposal to cap Russian seaborne oil prices, was cancelled, EU diplomats said.

Poland is seeking German support to slap EU sanctions on the Polish-German section of the Druzhba crude pipeline so Warsaw can abandon a deal to buy Russian oil next year without paying penalties, two sources familiar with the talks said.

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