Oil output in the United Arab Emirates (UAE) dropped ten pct in March from February to an average 1.05 mln barrels per day (bpd) mainly because of customer resistance to fixed prices of Abu Dhabi oil industry sources said. The UAE quota assigned by the Organisation of Petroleum Exporting Countries (OPEC) is 902000 bpd. Traders could buy Abu Dhabis Umm Shaif crude on the spot market for 17.50 dlrs a barrel yesterday against the official OPEC price of 17.72 dlrs. The sources said output by Abu Dhabi the largest UAE producer fell to around 700000 bpd from a range of 800000-820000 bpd during the preceding four months. Dubai production slipped to an average 350000 bpd from around 370000 in February after the emirate declared a mid-February output cut to help boost world oil prices the sources added. Most of the Abu Dhabi drop came from the offshore Umm Shaif and Upper and Lower Zakum fields as customers found fixed prices too high and cut liftings the sources said. The onshore Murban grade was less affected because Japanese term buyers saw strategic benefit in maintaining liftings they added. The Japanese firms lift around 120000 bpd most of it Murban. Abu Dhabi considers output from Upper Zakum which came on stream in 1983 to be test production not included in calculations for complying with the OPEC quota. Without Upper Zakum the UAE would be producing roughly its quota in March the sources added.
UAE OIL PRODUCTION DROPS TEN PCT IN MARCH