Key Takeaways
- Abu Dhabi National Oil Company (ADNOC) has issued its seventh crude oil tender since June.
- The tender allows buyers to load cargoes from UAE ports or through ship-to-ship transfers offshore Fujairah or Malaysia.
- Buyers are warned that bids at a discounted differential will be automatically rejected.
Abu Dhabi National Oil Company (ADNOC) has launched its seventh crude oil tender since June, despite ongoing shipping disruptions and fighting in the Middle East, according to trade sources. The latest tender is part of ADNOC's efforts to manage its crude supply amid volatile market conditions.
The offer includes loading from August to October at UAE ports such as Zirku and Das Island, the port of Fujairah outside the Gulf, or through ship-to-ship transfers offshore Fujairah or Malaysia. Bidders have until July 27 to submit their bids, with validity extending until July 29.
ADNOC has sold over 74 million barrels of crude in previous tenders, utilizing a shuttle fleet service to transport the oil out of the Gulf and onto other tankers in the Gulf of Oman. However, the viability of this service is now uncertain due to renewed hostilities between the US and Iran, which have resulted in at least two Emirati tankers being attacked while transiting the Strait of Hormuz.
The ongoing conflict has led to a significant tightening of supply availability for Middle Eastern crude, causing spot premiums to rise to their highest levels in over a month. This increase is attributed to shipping disruptions and concerns about the safety of oil shipments through the strategic waterway.
Trade sources noted that ADNOC's latest tender comes with strict conditions, warning buyers that any bid at a discounted differential will be automatically rejected. This move underscores the company’s determination to maintain fair market practices in light of the current geopolitical challenges.
The decision to continue issuing tenders despite the ongoing disruptions highlights ADNOC's resilience and commitment to maintaining its supply chain integrity. However, the future of these operations remains uncertain as the situation in the region continues to evolve.
