ADNOC Trading Buys Millions of Barrels of Discounted Iraqi Crude
 |
ADNOC Refining Ruwais Site. 2020. File photo. |
ABU DHABI/BAGHDAD — September 15, 2026
Abu Dhabi National Oil Company’s trading arm has bought millions of barrels of discounted Iraqi crude as the regional conflict disrupts oil supplies and shipping routes, according to people familiar with the deals. ADNOC agreed to buy up to 72 million barrels for August and September, making it the largest buyer of Iraqi crude during those months.
The purchases have helped Iraq maintain oil exports that were sharply reduced earlier in the conflict because of shipping constraints and disruptions around the Gulf. ADNOC has expanded its trading activity while using its growing tanker fleet and access to a pipeline linking Abu Dhabi’s oil infrastructure with the port of Fujairah.
One Iraqi energy source said ADNOC agreed to buy 32 million barrels in August at discounts ranging from $24.90 to $27 a barrel. For September, the company agreed to buy another 40 million barrels, including 10 million barrels at an $18 discount and 30 million barrels at a $25 discount.
Another source said Iraq's state oil marketing company, SOMO, allocated 32 million barrels to ADNOC in August, but the UAE company lifted about 20 million barrels because of export restrictions and difficulties securing enough crude from Basra Oil Company.
ADNOC had lifted about 14 million barrels of Iraqi crude by the time of the September 15 report. A separate source said ADNOC had also purchased about 20 million barrels through SOMO tenders for September and October loading at discounts of between $25 and $27 a barrel.
Other major energy companies have also moved to buy Iraqi crude at lower prices as disruptions have made it harder to export oil from the Gulf. Buyers have included Chinese state oil companies PetroChina and Zhenhua Oil, TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum.
Iraq's location at the northern end of the Gulf has made its exports particularly vulnerable to shipping disruptions. The country also has limited control over the tanker capacity needed to move its oil, increasing the pressure to offer discounts when export routes become difficult.
Iran recently allowed some tankers carrying Iraqi oil to pass through the Strait of Hormuz after repeated requests from Baghdad, according to Iran's state news agency. The arrangement has helped provide an additional route for Iraqi crude at a time when regional shipping remains heavily disrupted.
ADNOC has become more flexible in moving crude since the conflict began. Its expanding tanker fleet and the pipeline to Fujairah give the UAE company additional options for transporting oil toward export terminals outside the Gulf.
The changes are reflected in regional export figures. Iraq exported about 2 million barrels of oil per day in September, according to Kpler data cited in the report, down from 2.354 million barrels per day in August but above the 1.374 million barrels per day recorded in July.
UAE crude exports, meanwhile, increased to about 3.236 million barrels per day in September, compared with 2.886 million barrels per day in August and 2.871 million barrels per day in July.
ADNOC is expected to process much of the crude it has purchased from other Gulf producers at its Ruwais refinery, while selling more of its own crude into international markets, according to one source.
The strategy gives ADNOC greater flexibility as regional supply routes remain uncertain. The company has also publicly highlighted the importance of operational flexibility and integrated production, trading and logistics capabilities as disruptions continue to affect energy markets.
The developments come alongside signs of improving UAE-Iran relations. Iranian President Masoud Pezeshkian met UAE Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan on the sidelines of the BRICS summit in New Delhi, where the two sides said they had agreed to move beyond previous tensions.
For ADNOC, the purchases represent a broader expansion of its role in the crude market beyond producing and selling its own oil. By securing discounted Iraqi supplies and using its shipping and refining network, the company is positioning itself to respond to major changes in regional oil flows.
