Abu Dhabi National Oil Company (ADNOC) has significantly expanded its oil‑trading footprint by purchasing millions of barrels of discounted crude from Iraq’s state‑owned oil marketing organisation, SOMO. The deals, confirmed by three sources familiar with the transactions, came as regional supply chains were strained by the ongoing Iran war.

Volume and pricing details

According to the sources, ADNOC agreed to buy 32 million barrels in August at discounts ranging from $24.90 to $27 per barrel. In September the company secured a further 40 million barrels, including 10 million barrels at an $18‑per‑barrel discount and 30 million barrels at a $25 discount.

A second source noted that while SOMO allocated 32 million barrels to ADNOC for August, the UAE giant actually lifted 20 million barrels because of export constraints and Basra Oil Company’s limited crude availability. In September, ADNOC has lifted 14 million barrels so far.

Additional tender purchases

A third source added that ADNOC bought about 20 million barrels in tenders for September‑through‑October, with discounts between $25 and $27 per barrel.

These purchases made ADNOC the largest lifter of Iraqi crude in both August and September, according to the two Iraqi energy sources. The volume helped boost Iraqi oil exports, which had been sharply reduced in the early months of the conflict.

Other buyers and market context

SOMO’s August‑loading cargoes were offered at steep discounts, attracting a range of international buyers. Chinese state majors PetroChina and Zhenhua Oil, European integrator TotalEnergies, and major trading houses Vitol, Trafigura, Mercuria and Cathay Petroleum were also reported to be purchasing Iraqi crude.

The discounts reflect the broader market pressure caused by the Iran war, which has disrupted shipping routes and limited the flow of oil from the region. By stepping in as a reliable buyer, ADNOC not only supports Iraq’s export revenues but also secures a steady supply of crude for its own refining and trading operations.

Implications for the oil market

ADNOC’s aggressive purchasing underscores the strategic importance of the United Arab Emirates’ state‑owned energy firms in stabilising regional oil markets. The deals illustrate how discount‑driven contracts can keep oil flowing despite geopolitical turbulence, benefitting both producers and downstream consumers.

Analysts note that such large‑scale purchases may set a benchmark for future transactions, encouraging other traders to seek similar discount structures when regional supply is constrained.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.