ADNOC Divert Upper Zakum Crude to Ruwais Refinery

The UAE’s Upper Zakum crude exports declined sharply last month after ADNOC diverted more supply to its own refinery, Ruwais, and instead boosted exports of Murban crude, sources told Reuters.

• The swap in grades has tightened the medium-sour crude supply in Asia.
• "They invested a lot of money over at least 3-4 years upgrading Ruwais to run heavier grades so it makes a lot of sense to run Upper Zakum and sell Murban," said Adi Imsirovic, director of Surrey Clean Energy.
• "Barrel-for-barrel, Murban brings more revenue for equal compliance," Imisirovic added.
• ADNOC upgraded its 837kbpd refinery to process up to 420kbpd of heavier and more sour crude including Upper Zakum. Upper Zakum shipments from the refinery started last September.
• Upper Zakum crude shipments to Ruwais hit 366kbpd in March, up from 152kbpd in February, Kpler data showed.
• Kpler data also showed exports of Upper Zakum to China, India, South Korea, Thailand and Singapore fell around 50% or more in March from a year earlier. Supply to Japan slipped 13%.
• Rystad forecasts Upper Zakum exports at around 650kbpd in March, down from a monthly average of 940kbpd in 2023.
• ADNOC last week increased its Murban crude export forecast for June-October to 1.631mbpd-1.658mbpd.