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ADNOC Issues Eighth Spot Tender as UAE Ramps Up Crude Exports

Created at 11 Aug · 1:46 PM1 source↑ Market-relevant
IN SHORT

The UAE's Abu Dhabi National Oil Company (ADNOC) has issued its eighth spot tender since June, seeking to sell increased crude volumes. This follows the UAE's departure from OPEC and efforts to navigate export routes.

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Key Numbers

8spot tenders issued by ADNOC since June
90 million barrelscrude sold by ADNOC via spot tenders since June
4.1 million bpdUAE crude oil production in June

Who's Involved

ADNOC
national oil company of the United Arab Emirates
Reuters
news agency reporting on trade sources
OPEC
organization the UAE recently departed
Bloomberg
compiled vessel-tracking data
ADNOC Issues Eighth Spot Tender as UAE Ramps Up Crude Exports

↳ Why This Matters

The UAE's increased crude exports and strategic maneuvering to bypass chokepoints like the Strait of Hormuz, coupled with its departure from OPEC, signal a significant shift in its energy market strategy and potentially impact global oil supply dynamics and pricing.

Key facts

  • ADNOC has issued its eighth spot tender since June.
  • The tender includes cargoes of Upper Zakum, Umm Lulu, and Das crude grades for October and November loading.
  • The UAE has managed to boost oil exports to pre-crisis levels by June.
  • ADNOC is estimated to have sold over 90 million barrels of crude via spot tenders since early June.
  • The UAE's crude oil production reached a record high of 4.1 million bpd in June.
  • The UAE departed from OPEC on May 1.

    • The United Arab Emirates' national oil company, ADNOC, has issued its eighth spot tender since June as it seeks to sell increased crude volumes to international markets. The tender offers cargoes of Upper Zakum, Umm Lulu, and Das crude grades for loading in October and November.

    Trade sources told Reuters that ADNOC has been running a shuttle service to ship crude onto tankers outside the Strait of Hormuz, estimating that the company has sold over 90 million barrels of crude through spot tenders since early June. The UAE, which left OPEC on May 1, has managed to boost its oil exports to pre-crisis levels as early as June.

    ADNOC offers buyers flexibility in delivery locations, including Fujairah Storage, Zirku, and Das Island, or transfers outside the Strait of Hormuz and in Malaysia. The UAE has employed strategies such as maximizing its onshore pipeline to bypass Hormuz and shipping tankers in dark mode to maintain export levels. Vessel-tracking data indicated the UAE shipped more crude out of the Strait of Hormuz in June and July than any other Gulf producer.

    The UAE's crude oil production reached an estimated 4.1 million barrels per day in June, its highest output ever.

    Frequently asked questions

    ADNOC is issuing tenders to sell increased crude volumes following the UAE's departure from OPEC and to navigate export routes effectively.

    The latest tender includes cargoes of Upper Zakum, Umm Lulu, and Das crude grades.

    The cargoes are for loading in October and November.

    Yes, the UAE's crude oil production reached an estimated 4.1 million barrels per day in June, its highest output ever.

    What Happens Next

    01ADNOC will load crude cargoes in October and November.
    02Further tenders may be issued as ADNOC continues to sell increased crude volumes.

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    How It Developed

    ADNOC issued its eighth spot tender since June.
    The tender offers cargoes of Upper Zakum, Umm Lulu, and Das crude grades.
    Loading periods for the tender are October and November.
    ADNOC previously sold over 90 million barrels via spot tenders since early June.
    The UAE boosted oil exports to pre-crisis levels by June.
    The UAE left OPEC on May 1.
    The UAE has utilized pipelines and dark mode shipping to bypass Strait of Hormuz blockages.
    UAE crude oil production reached an estimated 4.1 million bpd in June, a record high.

    Sources

    T1
    ADNOC Issues Eighth Spot Tender Since June as UAE Ramps Up Crude ExportsOilPrice.com

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