UAE boosts imports of Iraqi Crude after oil refinery upgrade

The United Arab Emirates is buying more oil from energy-rich neighbors after a refinery upgrade allowed the country to process a wider variety of barrels.

Abu Dhabi National Oil Co. purchased a second cargo of Iraqi crude in May after receiving a first consignment in April, according to ship-tracking data compiled by Bloomberg. 

The tanker Spyros transported about 1 million barrels from Iraq’s Basrah terminal to Abu Dhabi, the data show. Both cargoes were Basrah Heavy crude, people with knowledge of the shipments said.

The same tanker also brought oil from Saudi Arabia to the UAE earlier in May, according to tracking information. That cargo was likely a rare shipment of so-called straight-run fuel oil, which could be further processed at Adnoc’s plant, the people said, asking not to be identified discussing a confidential matter.

Adnoc declined to comment.

The oil giant’s upgrade of its Ruwais refinery frees up more of its own high-value crudes for sale. After refitting the plant to process heavier and cheaper oils, Adnoc is exporting more of its lighter Murban and Upper Zakum barrels, both of which often sell at a premium to other regional grades.

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