ADNOC buys up to 72 million Iraqi crude barrels at steep discounts

  • ADNOC bought discounted Iraqi crude through its trading arm amid Iran war supply disruptions.
  • ADNOC agreed to buy 32 million barrels in August and 40 million in September.
  • SOMO offered August-loading cargoes to buyers including PetroChina, Zhenhua Oil and TotalEnergies.

Abu Dhabi National Oil Co (ADNOC) has expanded its trading activity by buying discounted Iraqi crude from state oil marketing organization SOMO amid supply disruptions from the Iran war. ADNOC agreed to buy 32 million barrels in August at discounts of $24.90 to $27 a barrel and a further 40 million barrels in September, including 10 million barrels at an $18 discount and 30 million at a $25 discount. Export constraints meant ADNOC lifted 20 million of the 32 million barrels allocated in August, while it had lifted 14 million barrels in September so far. A separate source said ADNOC bought about 20 million barrels through tenders for September-October lifting at discounts of $25 to $27 a barrel. Other buyers, including PetroChina, Zhenhua Oil, TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum, also took Iraqi crude offered at steep discounts.

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