FILE PHOTO: Oil tankers pass through the Strait of Hormuz in more peaceful times
| Photo Credit:
Hamad I Mohammed
Abu Dhabi National Oil Co. is offering to shuttle exports of Iraqi oil through the Strait of Hormuz, using its dark-transit playbook to transport Basrah and other crude to refiners in Asia, according to people familiar with the matter.The United Arab Emirates’ state-oil company has been the most successful producer at getting its crude out of the Persian Gulf. It has used so-called shuttling tactics, where vessels make short trips — often with their transponders turned off to avoid detection — before typically transferring their cargoes to other ships just outside the Gulf. In recent days Adnoc has offered spot cargoes to Asian buyers, using the same method to carry crude from other West Asian producers, most notably Iraq, the people said, asking not to be named as they’re not allowed to speak to the media.Shuttling, which has also been used by some other producers as well as Adnoc, has become an important means of transporting oil out of the gulf even as the Iran war continues, helping to contain the rise in global prices. However, it’s unusual for West Asian countries to turn to their neighbours to assist with carrying their energy exports.An Adnoc spokesperson said the company doesn’t comment on commercial matters. SOMO didn’t immediately respond to a request for comment.Until now, trading house Vitol Group and French oil major TotalEnergies SE have been the major carriers of Iraqi crude. Adnoc’s offers may already be having an impact. Ali Nizar, the chief of the country’s state oil marketing company SOMO, said on Tuesday crude exports had recently jumped to around 2 million barrels a day this month. That compares with a 1.5 million to 1.7 million barrels a day estimate from the country’s oil minister last week.The US and Iran have both recently hardened their stances in negotiations to reopen Hormuz, although Pakistan’s defence minister said on Tuesday that the two sides were close to some sort of arrangement. The stop-start nature of the talks and continued strikes on ships has made it difficult for Persian Gulf producers to export their oil. Several Adnoc tankers were attacked while transiting Hormuz last week. Offers of oil by traders other than Adnoc have slowed this month as tensions in the Persian Gulf increased again, the people said. Iraq’s SOMO has been offering deep discounts on its oil for companies that were willing to transit Hormuz, slashing prices to as much as $30 a barrel below benchmark prices for volumes loading this month. For its flagship Basrah Medium crude, discounts ranged between $25 and $27 a barrel.More stories like this are available on bloomberg.com©2026 Bloomberg L.P.Published on August 12, 2026
