Key facts
- Abu Dhabi National Oil Co. (ADNOC) has purchased millions of barrels of Iraqi crude at a discount.
- ADNOC was the largest lifter of Iraqi crude in August and September.
- ADNOC agreed to buy 32 million barrels in August at discounts of $24.90 to $27 a barrel.
- ADNOC agreed to buy 40 million barrels in September, with discounts of $18 to $25 a barrel.
- ADNOC bought about 20 million barrels in tenders for September-October lifting at discounts of $25 to $27 a barrel.
Abu Dhabi National Oil Co. (ADNOC) has purchased millions of barrels of Iraqi crude at significant discounts, expanding its role as a trader amid supply disruptions linked to the Iran war. The UAE's state energy firm was the largest lifter of Iraqi crude in August and September, according to two Iraqi energy sources.
ADNOC agreed to buy 32 million Iraqi barrels in August at discounts ranging from $24.90 to $27 a barrel. However, due to export constraints and Basra Oil Company's inability to secure sufficient crude, ADNOC lifted only 20 million barrels in August, according to a second Iraqi source. ADNOC has lifted 14 million Iraqi barrels so far in September.
Separately, a third source said ADNOC had bought about 20 million barrels of crude from Iraq's state-owned SOMO in tenders at a discount of between $25 and $27 a barrel for September through October lifting. ADNOC also agreed to buy a further 40 million barrels in September, including 10 million barrels at an $18-a-barrel discount and 30 million barrels at a $25 discount.
Other companies, including Chinese state majors PetroChina and Zhenhua Oil, TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum, also bought August-loading cargoes from SOMO at steep discounts.