* Cuts Murban, Upper Zakum supplies by 5 pct
* Das supplies to fall by 3 pct
* Refiners to use Saudi, Iraqi oil to replace Abu Dhabi
* Kuwait, Oman to implement their share of the reduction
(Adds Oman cut)
By Florence Tan and Rania El Gamal
SINGAPORE/DUBAI, Dec 13 Abu Dhabi National Oil
Company on Tuesday said it would cut crude supplies
by 3-5 percent across its three export grades to meet
commitments under an OPEC deal to curb output.
The move is one of the first visible indicators that oil
markets could be physically tighter in 2017 as the Organization
of the Petroleum Exporting Countries (OPEC) and other producers
cut production to ease a supply glut and prop up prices.
Still, ADNOC's cut is unlikely to have a large impact on the
market as it is within operational tolerance limits, while some
buyers have extra oil from Saudi Arabia and Iraq to replace lost
Abu Dhabi supplies, traders said.
"I think it's manageable. Many (refiners) received
incremental Arab Extra Light in January to cover," said a North
Asian refinery official, speaking on condition of anonymity.
In a notice to term lifters, ADNOC said it would reduce
Murban and Upper Zakum crude supplies by 5 percent and cut Das
crude exports by 3 percent.
"In line with OPEC's latest decision to cut production, we
regret to advise you that crude oil allocation for the month of
January 2017 will be reduced," ADNOC said.
Kuwait Petroleum Corp (KPC) has also notified at least two
customers in Asia it "will implement its share of the reduction,
which shall take effect January 2017", refining officials said.
Non-OPEC Oman will tell customers on Tuesday that it plans
to cut output by 45,000 bpd and will provide details on the
reduction to each customer later, a source said.
ADNOC's supply cuts will mostly hit Asia although they
remain within tolerance limits of 5 percent, as allowed by a
contract clause that lets seller or buyer adjust loading volumes
based on logistics.
ADNOC's production hit a record 3.1 million bpd in November,
according to a Reuters survey. The producer's flagship crude is
light sour Murban, with production of about 1.6 million bpd and
an API gravity of about 40 degrees.
Besides state-controlled ADNOC, France's Total,
South Korea's GS Energy and Korea National Oil Corporation
(KNOC), and the Japan Oil Development Company (Jodco)
are partners in producing onshore crude. Key Murban crude buyers
are in Japan, South Korea, New Zealand and Thailand.
The UAE's main offshore crudes are Upper Zakum and Das.
Upper Zakum, owned 28 percent by U.S. oil major ExxonMobil
, and 12 percent by Jodco, is a medium grade crude.
Das, a blend from the Umm Shaif and Lower Zakum oilfields,
is a relatively light crude grade. Beyond ADNOC's 60 percent
share, Britain's BP, Total and Jodco are partners in
producing Das crude.
(Additional reporting by Jane Chung in SEOUL, Chen Aizhu in
BEIJING and Henning Gloystein in SINGAPORE; Editing by Richard
Pullin and Tom Hogue)