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.