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FinanceADNOC issues seventh crude tender since June despite Strait of Hormuz and Red Sea risks
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Abu Dhabi National Oil Company (ADNOC) has issued its seventh crude oil tender since early June, offering millions of barrels for loading between August and October from UAE ports including Zirku, Das Island, and Fujairah, as well as via ship-to-ship transfers offshore Fujairah or Malaysia. The tender proceeds despite renewed threats to supply from the Strait of Hormuz and new shipping risks in the Red Sea from Iran-aligned Houthis in Yemen. ADNOC has sold over 74 million barrels in previous tenders since June, utilizing shuttle services and dark-mode tanker operations to bypass the Strait of Hormuz blockade. The UAE's crude production surged to a record 4.1 million barrels per day in June after leaving OPEC effective May 1, up from 3.3 million bpd in May. ADNOC will automatically reject discounted bids in this tender.
Source report
Abu Dhabi National Oil Company (ADNOC) has launched its seventh tender offering crude from the United Arab Emirates since early June, aiming to sell millions of barrels of oil for delivery between August and October from both inside and outside the Persian Gulf.
According to a Reuters report on Friday citing trade sources, ADNOC is inviting interested buyers to submit bids by the middle of next week for crude loading during the August–October period. This comes despite renewed threats to supply from the Strait of Hormuz and new risks to shipping in the Red Sea posed by the Iran-aligned Houthis in Yemen.
Previous Tender Volumes
Since early June, ADNOC is estimated to have sold more than 74 million barrels of crude to buyers through previous tenders, operating a shuttle service to move crude onto tankers outside the Strait of Hormuz.
Tender Conditions
In the seventh tender, ADNOC will automatically reject any bid from buyers offering a discounted differential, according to Reuters' sources.
Loading Locations
ADNOC is offering cargo loadings from:
- Inside the Persian Gulf: Zirku and Das Island ports (UAE)
- Outside the Gulf: Port of Fujairah
- Ship-to-ship transfers: Offshore Fujairah or Malaysia
UAE Production Context
Just before the return of hostilities in the Middle East, the UAE was estimated to have produced 4.1 million barrels per day (bpd) of crude oil in June—its highest output ever.
According to estimates by the International Energy Agency (IEA), the UAE's crude production jumped from 3.3 million bpd in May to 4.1 million bpd in June after the country left OPEC effective May 1. The country began raising output and managed to export significant volumes out of the Middle East, even as the Strait of Hormuz was mostly blockaded for the first half of June.
Adaptation to Strait Closure
The UAE has adapted to the closure of the Strait of Hormuz by:
- Sneaking tankers through the Strait in "dark mode"
- Increasingly offering crude grades for loading offshore Fujairah and at Sohar in Oman, outside the Strait
By Charles Kennedy for Oilprice.com
Source
OilPrice.com Daily News UpdateWestern
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ADNOC Issues Seventh Crude Tender Since June Despite Strait of Hormuz and Red Sea Risks