Exclusive-UAE’s ADNOC buys millions of barrels of Iraqi crude, sources say

Abu Dhabi National Oil Co (ADNOC) has purchased millions of barrels of discounted Iraqi crude oil, according to three sources familiar with the transaction. This move expands ADNOC's trading role amid supply disruptions caused by the Iran war. The state-owned company, through its trading arm, was the largest buyer of Iraqi crude in August and September, two Iraqi energy sources reported.

In August, ADNOC bought 32 million barrels at discounts ranging from $24.90 to $27 per barrel. In September, it acquired an additional 40 million barrels, with discounts ranging from $18 to $25 per barrel. One Iraqi source stated that Iraq's state oil marketing organization (SOMO) had allocated 32 million barrels to ADNOC in August, but the UAE firm only lifted 20 million due to export constraints and Basra Oil Company's inability to secure sufficient crude.

ADNOC lifted 14 million Iraqi barrels in September, according to another source. A third source revealed that ADNOC bought around 20 million barrels of crude from Iraq's state-owned SOMO in tenders at discounts between $25 and $27 per barrel for September through October. Other companies, such as Chinese state majors, TotalEnergies, Vitol, Trafigura, Mercuria, and Cathay Petroleum, are also purchasing Iraqi crude. SOMO offered August-loading cargoes at substantial discounts, attracting various buyers.