Adnoc shuttles Iraqi crude past Hormuz using dark-transit methods, offering spot cargoes to Asian buyers as war pressures supply. Iraq's SOMO slashes prices to $30 below benchmarks.
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Abu Dhabi National Oil Co. is offering to move Iraqi crude through the Strait of Hormuz, using its dark-transit method to deliver Basrah and other grades to Asian refiners, according to people familiar with the matter.
The UAE state company has been the most effective Persian Gulf producer at getting crude out of the region. Its tactic, known as shuttling, involves vessels making short trips – often with transponders off to avoid detection – before transferring cargoes to other ships just outside the Gulf.
In recent days Adnoc has offered spot cargoes to Asian buyers using the same method to carry crude from other West Asian producers, most notably Iraq, the people said. They asked not to be named because they aren't authorized to speak to the media.
Shuttling has become an important channel for moving oil out of the gulf even as the Iran war continues, helping contain the rise in global prices. It is unusual for West Asian countries to turn to neighbors to assist with energy exports.
An Adnoc spokesperson declined to comment on commercial matters. SOMO, Iraq's state oil marketing company, didn't respond to a request for comment.
Trading house Vitol Group and TotalEnergies SE have been the major carriers of Iraqi crude until now. Adnoc's offers may already be moving the needle. Ali Nizar, SOMO's chief, said Tuesday that crude exports had jumped to around 2 million barrels a day this month. That compares with a 1.5 million to 1.7 million barrel-a-day estimate from Iraq's oil minister last week.
The U.S. and Iran have both hardened their stances in negotiations to reopen Hormuz, though Pakistan's defense minister said Tuesday the two sides were close to some sort of arrangement. The stop-start talks and continued strikes on ships have made it difficult for Persian Gulf producers to export. Several Adnoc tankers were attacked while transiting Hormuz last week.
Offers of oil by traders other than Adnoc have slowed this month as tensions in the Persian Gulf increased again, the people said.
Iraq's SOMO has been offering deep discounts on its oil for companies willing to transit Hormuz, slashing prices to as much as $30 a barrel below benchmarks for volumes loading this month. For its flagship Basrah Medium crude, discounts ranged between $25 and $27 a barrel.
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