Abu Dhabi National Oil Company (ADNOC) has issued its ninth spot crude oil tender since June, offering cargoes for October and November loadings. The UAE is increasing oil exports despite regional tensions, utilizing methods like ship-to-ship transfers outside the Strait of Hormuz to bypass potential blockages.
ADNOC's consistent issuance of spot tenders and the UAE's increased oil exports highlight the nation's efforts to maintain market share and revenue despite geopolitical risks in a critical global energy chokepoint.
Abu Dhabi National Oil Company (ADNOC) has released its ninth spot crude oil tender since June, offering cargoes for loading in October and November. This move comes as the United Arab Emirates (UAE) continues to increase its oil production and exports, even amidst heightened tensions in the Strait of Hormuz.
The tender features Upper Zakum, Umm Lulu, and Das crude grades from fields within the Persian Gulf. Trade industry sources informed Reuters that ADNOC has sold an estimated over 100 million barrels of crude through its previous eight spot tenders this summer. Buyers have the option to purchase cargoes on a free-on-board basis from UAE ports or arrange ship-to-ship transfers outside the Strait of Hormuz, in the Fujairah-Sohar range.
The UAE, which departed OPEC on May 1, has managed to raise its oil exports to pre-crisis levels by June. The nation has implemented strategies to circumvent potential blockages in the Strait of Hormuz, including shuttling crude for loading onto larger vessels offshore and utilizing an onshore pipeline to transport crude across the country, bypassing the chokepoint. In June, the UAE's crude oil production reached an estimated record high of 4.1 million barrels per day.