The scale of the procurement is significant. ADNOC secured 32 million barrels for August and an additional 40 million for September, though actual liftings have lagged behind due to Iraq’s persistent export constraints. While August allocations hit 32 million barrels, logistics hurdles limited the reality to 20 million, with 14 million barrels moved so far this month. These logistical failures in Iraq have created a rare arbitrage opportunity, forcing Baghdad to sell at steep markdowns to attract buyers like PetroChina, TotalEnergies, and major trading houses.

This strategy provides ADNOC with a distinct competitive advantage. While Iraqi exports remain vulnerable to shipping capacity shortages and regional tensions, the UAE utilizes its dedicated pipeline to Fujairah. This infrastructure allows the company to bypass the Strait of Hormuz entirely, pushing UAE export volumes from 2.871 million barrels per day in July to 3.236 million this month. By replacing its own export-bound crude with cheaper Iraqi imports for domestic refining, ADNOC maximizes its presence in the international market, contrasting sharply with Iraq’s struggle to stabilize its output near 2 million barrels per day.