Baghdad (IraqiNews.com) – The UAE’s state-owned Abu Dhabi National Oil Company (ADNOC) has expanded its position as a trader by purchasing millions of barrels of discounted crude from Iraq due to supply interruptions caused by the conflict in the region.
Two sources in Iraq’s oil sector told Reuters that the UAE was the largest buyer of Iraqi crude in August and September, boosting Iraqi exports that had been severely constrained in the early months of the conflict.
ADNOC purchased 32 million Iraqi barrels in August with reductions ranging from $24.90 to $27 a barrel. In September, ADNOC purchased an additional 40 million barrels, including 10 million barrels at an $18 discount and 30 million barrels at a $25 discount.
While Iraq’s State Oil Marketing Organization (SOMO) offered ADNOC 32 million barrels in August, the UAE company only lifted 20 million barrels due to export limitations and the Basra Oil Company’s (BOC) inability to supply the required quantity.
One of the sources explained that ADNOC has shipped 14 million Iraqi barrels in September alone.
A third source said that ADNOC purchased around 20 million barrels of crude from SOMO in tenders at a discount of $25 to $27 per barrel for the September through October lifting period.
Other corporations are also purchasing Iraqi crude. SOMO discounted August-loading cargoes, attracting bidders such as PetroChina, Zhenhua Oil, TotalEnergies, Vitol, Trafigura, Mercuria, and Cathay Petroleum.
In August, Iran approved an Iraqi request to allow oil tankers to sail through the Strait of Hormuz after repeated requests from Baghdad.
