SINGAPORE: Abu Dhabi National Oil Company (ADNOC) has issued its seventh crude oil tender since the beginning of June, offering cargoes for loading between August and October, despite escalating geopolitical tensions, shipping disruptions and security concerns in the Middle East, according to trade sources.
Market participants said ADNOC has stipulated that any bids submitted below the official pricing differential will be automatically rejected, underscoring the producer’s confidence in continued strong demand for its crude despite heightened regional uncertainty.
The tender closes on July 27, with bids expected to remain valid until at least July 29.
According to trading sources, successful buyers will have the option to lift crude cargoes from UAE export terminals including Zirku Island and Das Island within the Arabian Gulf, the Port of Fujairah outside the Strait of Hormuz, or through ship-to-ship (STS) transfers conducted offshore Fujairah or Malaysia.
Since June, ADNOC has reportedly sold more than 74 million barrels of crude oil through a series of tenders, utilizing a dedicated shuttle tanker fleet to transport crude from Gulf export terminals to larger vessels in the Gulf of Oman, allowing shipments to bypass potential bottlenecks in the Strait of Hormuz.
However, traders noted that the effectiveness of this logistics strategy has come under increasing pressure following the resumption of hostilities between the United States and Iran. Security risks have intensified after reports that at least two Emirati oil tankers were attacked while transiting the Strait of Hormuz, raising concerns over the safety of regional energy exports.
The renewed conflict has also tightened the availability of Middle Eastern crude in the spot market, pushing spot premiums for regional crude grades to their highest levels in more than a month as buyers factor in growing geopolitical risks and potential supply disruptions.
Industry analysts believe ADNOC’s continued issuance of crude tenders demonstrates its commitment to maintaining export flows despite the volatile security environment, while highlighting the resilience of the UAE’s oil export infrastructure amid one of the region’s most challenging geopolitical periods in recent years.
By Reuters
