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FinanceADNOC issues seventh crude tender since June despite Hormuz and Red Sea risks
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Abu Dhabi National Oil Company (ADNOC) has issued its seventh crude tender since June, offering millions of barrels for loading between August and October from UAE ports inside and outside the Persian Gulf, including Zirku, Das Island, and Fujairah, as well as via ship-to-ship transfers offshore Fujairah or Malaysia. This comes despite renewed threats to supply from the Strait of Hormuz and new shipping risks in the Red Sea from Iran-aligned Houthis. ADNOC has sold over 74 million barrels in previous tenders since June, using shuttle services and dark-mode tankers 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 the current tender.
Source report
Abu Dhabi, UAE — The Abu Dhabi National Oil Company (ADNOC) has issued its seventh tender offering crude from the United Arab Emirates since the beginning of June, aiming to sell millions of barrels of oil between August and October from both inside and outside the Persian Gulf.
According to Reuters, which cited trade sources on Friday, ADNOC is inviting interested buyers to submit bids by the middle of next week for crude loading during the August–October period. The tender 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 Tenders and 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: UAE ports of Zirku and Das Island
- Outside the Gulf: Port of Fujairah
- Ship-to-ship transfers: Offshore Fujairah or Malaysia
Production and Export 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 oil 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.
The UAE has adapted to the closure of the Strait of Hormuz by moving tankers in dark mode through the Strait and 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 Hormuz and Red Sea Risks