ADNOC buys 72 million barrels of discounted Iraqi crude for August-September

September 15, 2026 at 11:30 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

ADNOC agreed to buy 72 million barrels of Iraqi crude for August and September at discounts of up to $27 per barrel. The UAE producer lifted about 20 million barrels in August and 14 million barrels so far in September due to Iraqi export constraints. The purchases free more UAE crude for export via Fujairah, bypassing the Strait of Hormuz.

Key Facts

ADNOC agreed to buy 32 million barrels of Iraqi crude for August at discounts of $24.90 to $27 per barrel.
ADNOC agreed to buy another 40 million barrels for September, including 10 million barrels at an $18 discount and 30 million barrels at a $25 discount.
Iraqi crude exports fell to 1.374 million barrels per day in July before recovering to 2.354 million bpd in August, according to Kpler.
UAE crude exports rose from 2.871 million bpd in July to 3.236 million bpd so far in September.
PetroChina, Zhenhua Oil, TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum also bought discounted Iraqi barrels.

The ADNOC Purchases

ADNOC agreed to buy 32 million barrels of Iraqi crude for August at discounts of $24.90 to $27 per barrel and another 40 million barrels for September, according to sources cited by Reuters. September purchases included 10 million barrels discounted by $18 and another 30 million barrels discounted by $25. Actual liftings have been smaller because Iraq is still struggling to get crude out. ADNOC was allocated 32 million barrels for August but lifted about 20 million barrels after export constraints limited availability, one source said. It has lifted another 14 million barrels so far in September.

Iraqi Export Constraints

Iraq exported just 1.374 million bpd in July before recovering to 2.354 million bpd in August, according to Kpler. September exports are running around 2 million bpd. Iran last month granted some Iraqi tankers permission to pass through Hormuz following requests from Baghdad. Iraq has little shipping capacity of its own and historically moved most of its crude through the Persian Gulf, leaving its barrels particularly exposed to the disruption.

UAE Export Advantage

ADNOC has considerably better logistics. The UAE can move its own crude through the pipeline to Fujairah, where tankers load outside Hormuz. UAE crude exports have risen from 2.871 million bpd in July to 3.236 million bpd so far in September. ADNOC plans to run much of the Iraqi crude through its Ruwais refinery and sell more UAE crude into the international market, according to one Reuters source. Other buyers have spotted the bargain: PetroChina, Zhenhua Oil, TotalEnergies, Vitol, Trafigura, Mercuria and Cathay Petroleum have also purchased Iraqi barrels offered at steep discounts.