Shafaq News- Baghdad
Abu Dhabi National Oil Company (ADNOC) has bought millions of barrels of discounted Iraqi crude, becoming the largest lifter of Iraqi oil in August and September as Baghdad sought to restore exports disrupted by the Iran war, Reuters reported on Tuesday, citing three sources familiar with the matter.
Two Iraqi energy sources said the UAE state oil company, through its trading arm, emerged as Iraq’s biggest crude buyer during the two months, helping support exports that had fallen sharply during the earlier stages of the conflict.
One Iraqi source said ADNOC agreed to buy 32 million barrels of Iraqi crude for August at discounts ranging from $24.90 to $27 per barrel.
For September, the company agreed to purchase another 40 million barrels, including 10 million barrels at an $18-per-barrel discount and 30 million at a $25 discount, the source said.
A second Iraqi source said the State Oil Marketing Organization (SOMO) had allocated 32 million barrels to ADNOC for August, but the company ultimately lifted about 20 million because of export constraints and Basra Oil Company’s inability to provide sufficient crude.
ADNOC has lifted about 14 million barrels of Iraqi crude so far in September, according to the source.
A third source told Reuters that ADNOC had also bought about 20 million barrels from SOMO through tenders for September-October lifting at discounts of between $25 and $27 per barrel.
Other companies have also bought discounted Iraqi crude. Reuters said SOMO’s August-loading offers attracted PetroChina, Zhenhua Oil, TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum.
Iran last month allowed several tankers carrying Iraqi oil to transit the Strait of Hormuz after repeated requests from Baghdad through several channels, according to Iran’s state news agency IRNA.
Iraq’s exports had fallen sharply during the early months of the war, partly because of its location at the northern end of the Gulf and its lack of a substantial state-controlled tanker fleet.
Kpler data cited by Reuters showed Iraq exporting about two million barrels per day this month, down from 2.354 million bpd in August but above 1.374 million bpd in July.
UAE crude exports, meanwhile, rose to 3.236 million bpd this month from 2.886 million bpd in August and 2.871 million bpd in July.