ADNOC tests demand for Hormuz loadings

Abu Dhabi National Oil Company has opened another spot crude tender, offering buyers the option to load cargoes inside the Strait of Hormuz as Gulf exporters test confidence in a shipping route still shadowed by security, insurance and transit concerns after an interim U. S.-Iran peace arrangement.

The tender, issued on Friday, covers Upper Zakum, Umm Lulu and Das crude for June, July and August loading, with buyers able to bid for up to 2 million barrels. It is the company’s fourth crude tender this month and comes after a wave of spot sales that has placed Abu Dhabi at the centre of efforts to restore normal crude flows through one of the world’s most important energy corridors.

The terms give buyers, subject to mutual agreement, the ability to lift cargoes on a free-on-board basis from Zirku or Das Island, both inside the Strait of Hormuz. The tender also offers alternatives outside the most sensitive route, including loading from storage at Fujairah and ship-to-ship transfer options in locations such as Fujairah, Sohar and Malaysia. Delivered cargoes are also being made available, giving ADNOC flexibility to match buyer appetite with differing risk tolerances.

The structure of the offer is being closely watched because it provides a market test of whether refiners and traders are prepared to resume direct loadings from Gulf terminals after weeks of disrupted flows, higher freight premiums and caution among shipowners. The ability to load at Fujairah, outside the Strait, remains an important hedge for buyers seeking Abu Dhabi grades without committing vessels to the inner Gulf route.

Upper Zakum is Abu Dhabi’s flagship offshore medium sour grade and a key benchmark-linked crude for Asian refiners. Umm Lulu and Das are also established Gulf grades with steady demand across Asia, particularly among refiners configured to process medium sour barrels. The cargoes are expected to be priced either against official selling prices or Dubai-linked market benchmarks, depending on the structure agreed with buyers.

The tender follows sizeable ADNOC spot activity earlier this month, when at least 30 million barrels of crude were sold to refiners and trading houses. Those sales were supported by Asian demand, supply uncertainty elsewhere in the Gulf and the need among refiners to secure summer feedstock. The latest offer extends that strategy, but with greater emphasis on whether physical buyers are ready to re-enter Hormuz-facing logistics.

The Strait of Hormuz remains central to global energy security because a large share of crude and liquefied natural gas exports from Gulf producers passes through the narrow waterway between Iran and Oman. Any disruption to the route immediately affects freight rates, insurance costs and refinery procurement decisions across Asia and Europe. Tanker traffic has started to improve after the interim U. S.-Iran arrangement, though shipping companies and insurers continue to assess route safety and compliance risks.

Market sentiment has also shifted since Washington and Tehran moved to calm hostilities. Oil prices eased from conflict-driven highs as traders priced in a lower probability of prolonged disruption, but physical markets remain cautious because the full restoration of flows depends on navigational safety, political follow-through and the willingness of shipowners to commit vessels. A fragile ceasefire framework has reduced immediate escalation risk without removing the operational concerns that built up during the confrontation.

Iran’s approach to the waterway is another source of uncertainty. Shipping and energy market participants have been assessing new transit conditions, possible permit requirements and the prospect of additional fees after an initial grace period. Any move that raises the cost or complexity of passage would affect crude differentials, freight economics and the pricing of Gulf grades relative to alternative supplies from West Africa, the Americas and other non-Gulf producers.

For ADNOC, the tenders serve several purposes. They allow the company to monetise available barrels, reinforce Abu Dhabi’s position as a reliable supplier, and gather real-time pricing signals from buyers after a period of market stress. They also help determine whether sellers can move back from defensive logistics, such as Fujairah loading and ship-to-ship transfers, towards standard Gulf terminal operations.

Other Gulf exporters are moving cautiously in the same direction, with producers seeking to lift volumes while avoiding a sudden strain on tanker availability or insurance capacity. Kuwait and Iraq have also been looking at ways to rebuild export momentum as regional traffic improves. The pace of recovery will depend less on headline diplomacy than on whether each voyage can be executed without delays, extra security measures or unexpected costs.