ADNOC buys millions of barrels of Iraqi crude, sources say

• ADNOC agreed to buy 32 million barrels in August at discounts of $24.90-$27 per barrel and 40 million barrels in September at discounts of $18-$25 per barrel, though actual liftings were lower due to export constraints
• Iraq's state oil marketer SOMO offered August cargoes at steep discounts, attracting multiple buyers including Chinese state majors PetroChina and Zhenhua Oil, plus trading houses Vitol, Trafigura, and Mercuria
• ADNOC has lifted 14 million Iraqi barrels in September so far, expanding its role as a trader and helping Iraq restore exports amid war-related supply disruptions

Summary: ADNOC Buys Millions of Barrels of Iraqi Crude at Steep Discounts

Abu Dhabi National Oil Co (ADNOC) has emerged as the largest buyer of Iraqi crude oil in August and September 2026, purchasing millions of barrels at significant discounts amid supply disruptions caused by the Iran war.

Key Transaction Details:

• August: ADNOC agreed to purchase 32 million barrels at discounts ranging from $24.90 to $27 per barrel, though only 20 million barrels were actually lifted due to export constraints
• September: The company purchased 40 million barrels—10 million at an $18 discount and 30 million at a $25 discount—with 14 million barrels lifted so far
• September-October: An additional 20 million barrels were purchased at $25-$27 discounts

Market Context:

ADNOC's trading arm has significantly expanded its role as a crude trader during regional supply disruptions. The steep discounts reflect Iraq's urgent need to move stranded crude supplies that had been severely curtailed during the earlier months of the Iran conflict.

Iraq's state oil marketing organization (SOMO) faced export challenges, including Basra Oil Company's inability to secure sufficient crude volumes. The company offered August-loading cargoes at steep discounts to attract international buyers.

Other Buyers:

Additional major purchasers of discounted Iraqi crude include Chinese state firms PetroChina and Zhenhua Oil, as well as international traders TotalEnergies, Vitol, Trafigura, Mercuria, and Cathay Petroleum.

Implications:

The transactions underscore how geopolitical tensions are reshaping regional oil trade flows, creating opportunities for well-capitalized national oil companies to expand trading operations while providing Iraq crucial revenue during wartime supply constraints.