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Agencies
Abu Dhabi National Oil Company (Adnoc) said it’s ready to increase oil output in line with guidance set by OPEC and allied producers, echoing comments by Saudi Arabia that it will boost supply to meet demand.
The oil giant confirmed on Tuesday that it currently has an oil production capacity of around 3.3 million bpd, and remains on track to increase its production capacity to 3.5 million bpd by the end of 2018.
Adnoc has the ability to increase oil production by several hundred thousand barrels of oil per day, should this be required to help alleviate any
potential supply shortage in the market.
Oil prices have gained more than 3 percent since OPEC and allies agreed on June 22 to raise output to meet production caps set in 2016. Some OPEC members, including Venezuela and Libya, haven’t been pumping up to their limits, contributing to gains in prices over the past week.
The company emphasised that, working in close cooperation with the UAE Ministry of Energy and Industry, it stands ready to increase its production in alignment and coordination with OPEC and the OPEC and non-OPEC Joint Ministerial Monitoring Committee.
Under long-term crude contracts, buyers and sellers generally have leeway to supply or receive about 5 percent to 10 percent more or less oil each month than agreed.