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Market Chatter: Adnoc Offers to Shuttle Iraqi Oil Through Hormuz in Dark-Transit

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The Abu Dhabi National Oil is reportedly to shuttle Iraqi oil exports through the Strait of Hormuz using the dark-transit strategy to move Basrah and other crude grades to refiners in Asia, Bloomberg reported, citing people familiar with the matter.

UAE's state-owned oil company has been the most successful at getting its exports out of the Persian Gulf, amid the ongoing military conflict in the region.

It has made use of shuttling tactics, which involved vessels making short trips with their transponders turned off, to transport cargoes to vessels located just outside the Hormuz.

The company has used these methods to offer spot cargoes to buyers in Asia, with Indian refiners receiving the bulk of these cargoes, while using the same methods to transport the crude of other Middle Eastern producers.

As the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows and one-fourth of seaborne crude oil, remained effectively shut for the sixth month running, shuttling operations such as these have helped keep prices in check, according to the report.

ADNOC's media team said that they refuse to comment on commercial matters, in response to' email to the company.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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