UAE tells some oil buyers to pick up supply outside Hormuz
dubai, April 29 -- Abu Dhabi National Oil Co. (Adnoc) has informed some term customers of the availability of cargoes for loading off Fujairah, outside the Persian Gulf, as producers explore different routes to bring their oil to market.
The UAE state-owned producer told its buyers they could pick up cargoes of grades including Upper Zakum via ship-to-ship (STS) transfer off Fujairah, said traders who asked not to be identified as negotiations are private. The cargoes are mainly available for loading in May, they added.
Upper Zakum typically loads from a port at Zirku Island, located deep within the Persian Gulf, that doesn't have a pipeline to the mainland. The availability of May cargoes via STS transfer off Fujairah means the shipments are on board vessels outside the Strait of Hormuz.
It's not immediately clear when and how these Upper Zakum shipments crossed the strait as transit through the narrow waterway remains curtailed by Iranian and American blockades. The UAE does have an oil pipeline that leads to Fujairah, but that's mainly being used for the nation's flagship Murban grade.
Prior to these latest offers, the UAE had only supplied Murban crude from Fujairah. Elsewhere in the region, Saudi Arabia has diverted oil from within the gulf to the Red Sea port of Yanbu, where cargoes have loaded and sailed to customers including in India and South Korea.
Cost is also likely to be an issue, given Adnoc hasn't yet released official selling prices for its slew of grades for volumes that'll load next month.
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