UAE Shuttles Oil Exports From Iraq Through the Strait of Hormuz

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Or sign-in if you have an account.(Bloomberg) — Abu Dhabi National Oil Co. is offering to shuttle exports of Iraqi oil through the Strait of Hormuz, using its dark-transit playbook to transport Basrah and other crude to refiners in Asia, according to people familiar with the matter.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe United Arab Emirates’ state-oil company has been the most successful producer at getting its crude out of the Persian Gulf. It has used so-called shuttling tactics, where vessels make short trips — often with their transponders turned off to avoid detection — before typically transferring their 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 Middle Eastern producers, most notably Iraq, the people said, asking not to be named as they’re not allowed to speak to the media.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againShuttling, which has also been used by some other producers as well as Adnoc, has become an important means of transporting oil out of the gulf even as the Iran war continues, helping to contain the rise in global prices. However, it’s unusual for Middle Eastern countries to turn to their neighbors to assist with carrying their energy exports.An Adnoc spokesperson said the company doesn’t comment on commercial matters. SOMO didn’t immediately respond to a request for comment.Until now, trading house Vitol Group and French oil major TotalEnergies SE have been the major carriers of Iraqi crude. Adnoc’s offers may already be having an impact. Ali Nizar, the chief of the country’s state oil marketing company SOMO, said on Tuesday crude exports had recently jumped to around 2 million barrels a day this month. That compares with a 1.5 million to 1.7 million barrels a day estimate from the country’s oil minister last week.The US and Iran have both recently hardened their stances in negotiations to reopen Hormuz, although Pakistan’s defense minister said on Tuesday that the two sides were close to some sort of arrangement. The stop-start nature of the talks and continued strikes on ships has made it difficult for Persian Gulf producers to export their oil. 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 that were willing to transit Hormuz, slashing prices to as much as $30 a barrel below benchmark prices for volumes loading this month. For its flagship Basrah Medium crude, discounts ranged between $25 and $27 a barrel.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.