Murban Rebound: ADNOC Restores Crude Supply for Equity Partners After July Shock

Abu Dhabi National Oil Company (ADNOC) has reportedly restored most of its Murban crude oil allocations to equity holders for July 2025, following a surprise cut that rattled global oil markets and triggered derivatives losses of up to $12 per barrel for major stakeholders like BP and TotalEnergies.

 

The initial reduction—estimated at 3–4 million barrels, or up to 40% of expected cargoes—was part of ADNOC’s strategic recalibration to prioritize domestic refining at the Ruwais complex, trimming export volumes from 1.76 mb/d to 1.61 mb/d through May 2026. While term buyers under long-term contracts were spared, equity holders faced a mismatch between hedged positions and actual deliveries, leading to mark-to-market losses and market volatility.

 

Now, ADNOC is said to have reinstated most of the July volumes, easing tensions and restoring confidence in Murban’s reliability as a benchmark crude. The move is seen as a response to mounting pressure from trading desks and refiners, who warned that erratic supply could undermine Murban’s futures liquidity and long-term viability.

 

Key Highlights:

 

Restored Supply: Most July allocations reinstated for equity holders after earlier cuts.

 

Market Impact: Murban spot premiums stabilize; futures volatility eases.

 

Strategic Balance: ADNOC continues refining push while managing partner expectations.

 

Benchmark Watch: Traders reassess Murban’s maturity amid supply-side control concerns.

 

This episode underscores the delicate balance ADNOC must strike between domestic priorities and global market credibility.

 

Sources: Arabian Post, OilPrice.com, MNI Markets