Abu Dhabi National Oil Company (ADNOC) has sold at least 12 million barrels of spot crude oil to Asian refiners and trading firms at premium prices as renewed hostilities between the United States and Iran continue to tighten global oil supplies.
The latest sales came through ADNOC’s seventh spot crude tender since June, with buyers paying higher prices amid shipment delays and reduced oil flows through the Strait of Hormuz, according to trade sources on Wednesday.
The disruption has triggered a buying spree across Asia, where refiners have turned to alternative crude grades and increased purchases of ADNOC cargoes to secure supplies.
Oil shipments through the Strait of Hormuz have dropped significantly since fighting between the United States and Iran escalated earlier this month. Although ADNOC has been quietly moving crude out of the Gulf using a shuttle fleet before transferring it to other tankers in the Gulf of Oman, exports have slowed throughout the month.
Indian Oil Corporation (IOC) bought 2 million barrels of Upper Zakum crude for end-August loading at flat or a premium of $1 per barrel to August Dubai crude quotes on a delivered basis.
Chinese energy giants, including Sinopec’s trading arm Unipec, PetroChina and Sinochem, each purchased 2 million barrels of Upper Zakum crude at premiums of about $3 to $4 per barrel above September Dubai crude quotes. The cargoes are scheduled for delivery between September and October.
Japanese refiner, Idemitsu Kosan, also secured 2 million barrels of Das crude at a premium of around $1 per barrel to September Dubai crude quotes on a free-on-board basis.
The companies involved did not comment on the transactions.
The latest tender marks the seventh organised by the UAE oil producer since the beginning of June. ADNOC offered Murban, Upper Zakum, Umm Lulu and Das crude for loading between August and October.
It remains unclear whether any Murban cargoes were sold, although one trader said ADNOC had sought a premium of about $10 per barrel for the grade.
The latest sales have pushed ADNOC’s total crude volume sold through the seven tenders to more than 86 million barrels.
Before the conflict, the United Arab Emirates exported 103 million barrels of crude in January and 95 million barrels in February, according to data from Kpler.
Another trader said ADNOC had also asked South Korean buyers to improve their bids by Wednesday afternoon as it worked to finalise additional sales.