UAE's ADNOC Trading buys millions of barrels of Iraqi crude

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UAE’s ADNOC Trading buys millions of barrels of Iraqi crude: sources

September 15, 2026

UAE's ADNOC Trading buys millions of barrels of Iraqi crude oil — Photo: Reuters

DUBAI,— Abu Dhabi National Oil Co. ADNOC has purchased millions of barrels of discounted crude oil from Iraq’s state oil company, three people familiar with the deal said, Reuters reported.

The purchases show the UAE firm’s growing role as an oil trader as the Iran war disrupts supply.

ADNOC’s trading division was the top buyer of Iraqi crude in August and September, two Iraqi energy sources said.

The purchases helped raise Iraqi oil exports, which had dropped sharply in the war’s early months.

One Iraqi source said ADNOC agreed to buy 32 million barrels of Iraqi oil in August. The discounts on those barrels ranged from $24.90 to $27 per barrel.

In September, ADNOC bought another 40 million barrels. That included 10 million barrels at an $18 discount and 30 million barrels at a $25 discount, the source said.

A second Iraqi source said Iraq’s state oil marketing company, SOMO, had set aside 32 million barrels for ADNOC in August.

However, the UAE company only took 20 million barrels because of export limits and problems at Basra Oil Company in securing enough crude. ADNOC has picked up 14 million Iraqi barrels so far this month, the source said.

A third source said ADNOC bought roughly 20 million barrels from SOMO through bidding rounds. The discount on those barrels ranged from $25 to $27 per barrel, covering shipments loaded from September through October.

ADNOC is not the only buyer. SOMO sold August cargoes at steep price cuts, drawing interest from other buyers.

Those included Chinese state companies PetroChina and Zhenhua Oil, along with TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum, trade sources told Reuters earlier.

Iran’s state news agency, IRNA, reported last month that Iran allowed several tankers carrying Iraqi oil to pass through the Strait of Hormuz. The move followed repeated requests from Baghdad through different channels.

Iraq’s oil exports had fallen sharply in the war’s early months, partly because of the country’s location at the northern end of the Gulf and its lack of its own tanker fleet.

ADNOC has adapted quickly since the war began. The company has used a growing tanker fleet and a pipeline running to the port of Fujairah to ship oil out of the Gulf without crossing the Strait of Hormuz.

Despite past attacks on some ADNOC tankers, Iran’s President Masoud Pezeshkian met Sunday with UAE Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan during the BRICS summit in New Delhi.

Both sides said they agreed to move past earlier tensions.

Iraq exported about 2 million barrels of oil per day this month, according to data from Kpler. That is down from 2.354 million barrels per day in August but higher than July’s 1.374 million barrels per day.

UAE crude exports climbed to 3.236 million barrels per day this month, up from 2.886 million in August and 2.871 million in July, Kpler data showed.

One of the three sources said ADNOC plans to refine most of the crude bought from other Gulf producers at its Ruwais refinery, while selling more of its own oil on international markets.

(With files from Reuters)