The UAE’s state-owned Abu Dhabi National Oil Co. is offering to transport Iraqi oil through the Strait of Hormuz using the same shuttle system it has relied on to move its own crude out of the Persian Gulf, Bloomberg reports.
Under the method, vessels make short trips through Hormuz, often with their transponders switched off, before transferring their cargo to other ships outside the Gulf. ADNOC has been one of the most successful regional producers at moving oil through the strait despite the ongoing conflict with Iran.
In recent days, ADNOC has offered spot cargoes of Iraqi crude, including Basrah oil, to Asian buyers. Indian refiners were among those receiving offers, according to people familiar with the matte
Until now, Vitol Group and TotalEnergies have been among the main carriers of Iraqi crude. Iraq’s state oil marketer SOMO said exports have recently climbed to around 2 million barrels per day this month, compared with an earlier estimate of 1.5 million to 1.7 million barrels per day.
The increased use of shuttling has become an important way of moving oil out of the Gulf as negotiations over reopening the Strait of Hormuz remain uncertain and attacks on vessels continue. Several ADNOC tankers were attacked while transiting Hormuz last week.
Iraq, meanwhile, has been offering steep discounts to companies willing to transport its oil through the strait. SOMO has cut prices by as much as $30 per barrel below benchmark levels for some cargoes loading this month, while discounts on Basrah Medium crude have ranged between $25 and $27 per barrel.
ADNOC has its own fleet of vessels and has also hired ships from Sinokor Group, while Iraq has largely continued selling crude on a loading basis and relying on other companies to handle transportation.
(YWN World Headquarters – NYC)
