Abu Dhabi National Oil Co. (ADNOC) is reportedly facilitating the transport of Iraqi oil through the Strait of Hormuz using covert tactics to transfer Basrah crude and other grades to Asian refineries. This strategy, referred to as “shuttling,” involves vessels undertaking short journeys with their tracking systems disabled, transferring cargo to larger ships just outside the Gulf. ADNOC’s approach has proven effective for exporting oil while navigating regional tensions and ongoing conflicts, particularly from Iran.
Recently, ADNOC has extended offers for spot cargoes to Asian clients, leveraging these same shuttling techniques to transport Iraq’s crude oil. Indian refiners are among the recipients of these offers. Historically, companies such as Vitol Group and TotalEnergies have been the primary carriers of Iraqi oil. However, ADNOC’s involvement has increased Iraq’s crude exports to approximately 2 million barrels a day, significantly exceeding prior estimates.
Despite the escalating tensions in the Persian Gulf, including attacks on ships, ADNOC continues to expand its shipping fleet, incorporating vessels from Sinokor Group, a leading oil supertanker operator. Concurrently, Iraq has been selling its oil at competitive discounts, attempting to attract buyers willing to navigate Hormuz. These strategies highlight a collaborative effort among regional oil producers amidst challenging market conditions.
