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Market Chatter: UAE's Adnoc Ramps Up Crude Exports to Asia

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Abu Dhabi National Oil Company has aggressively expanded exports during the US-Iran ceasefire, selling at least 30 million barrels of spot crude to major Asian refiners and trading firms this month, Reuters reported Tuesday.

The UAE's state-backed producer has actively stepped up its market presence, offering additional spot cargoes just this week to further boost its regional export footprint, the report said.

The vast majority of these multi-million-barrel deals were negotiated and executed over the past two weeks, the report noted citing sources.

In India, state-run giants Indian Oil and Bharat Petroleum secured a combined 6 million barrels of Abu Dhabi crude, with cargo prices landing at parity or modest $1 to $2 premiums per barrel over Dubai benchmarks on a cost-and-delivered basis via ship transfers at Fujairah, as per the article.

Japan's largest refiner, Eneos, purchased 3 million barrels of Das crude, while South Korea's GS Energy snapped up 1 million barrels, it said.

China's Unipec, the trading arm of state-owned refining titan Sinopec, led the pack by purchasing between 6 million and 8 million barrels of Upper Zakum crude, according to the report.

Vitol locked in 4 million barrels of the same grade, while China's independent refiner Rongsheng Petrochemical took 2 million barrels, it added.

The report further noted that South Korea's largest refiner, SK Energy, secured 7 million barrels of the premium Umm Lulu crude grade, with some traders confirming that the volumes fetched slight pricing premiums.

To ensure flexibility amidst shifting regional logistics, the company offered buyers diverse logistical arrangements.

As per the report, cargoes were made available on a free-on-board basis straight from onshore storage tanks at the port of Fujairah, or via key marine terminals located at Zirku and Das Island.

Furthermore, the state producer accommodated buyers through ship-to-ship transfers off the coasts of the UAE, Oman, and Malaysia, while providing some clients with standard cost-and-freight delivery options, it said.

The relevant parties did not respond immediately to a request for comment from.

(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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