ADNOC buys $590M in tankers as Hormuz crisis reshapes oil trade

Nearly five months after the closure of the Strait of Hormuz, Abu Dhabi National Oil Co has purchased five very large crude carriers from Frontline ↗ 0.69% for approximately $590 million, part of a broader effort to control its supply chain as geopolitical tensions reshape global energy routes.reuters

The acquisitions — two 2012-built vessels at about $115 million each and three 2015-built ships at roughly $120 million each — allow ADNOC to move crude to customers even as conflicts disrupt two of the world's busiest maritime chokepoints. The company has also acquired three very large gas carriers and ordered 25 to 30 new vessels from various shipyards, according to Reuters.reuters

A Supply Chain Under Strain

While producers such as Iraq, Qatar, and Kuwait struggle to place oil in the market due to the disruption, the UAE has sold millions of barrels through direct sales and spot tenders, leveraging the 1.8-million-barrel-per-day pipeline to Fujairah that bypasses the Strait. ADNOC has also chartered about 25 crude tankers from South Korea's Sinokor, deploying roughly 15 as shuttle tankers to move crude from facilities inside the Strait to storage terminals in Fujairah and Oman.japan-forward+1

The crisis has now expanded beyond Hormuz. Houthi forces have escalated attacks on Red Sea shipping, threatening Saudi Arabia's alternative export route through the Yanbu pipeline on the Red Sea coast. Saudi Arabia has launched military operations against the Houthis and sought an international naval coalition involving Turkey, Pakistan, Egypt, and others to protect the chokepoint.juancole

Japan Draws Down Reserves as Global Stocks Hit Lows

Japan, which sourced over 90% of its crude imports from the Middle East in 2025, turned to strategic reserves after Prime Minister Sanae Takaichi authorized drawdowns on March 11 — a decision that bridged the gap until alternative US supplies could arrive in May. Dr. Ken Koyama of the Institute of Energy Economics, Japan, called it "a very important decision, made swiftly and timely, as a matter of national policy."japan-forward

Strategic reserves across the United States, China, and Europe are now at historic lows, according to University of Michigan professor Juan Cole. The IMF has warned that in a severe scenario with oil at $125 per barrel, global growth could fall to 2% and inflation could climb to nearly 6%.newsonair+1

No Resolution in Sight

A June memorandum of understanding briefly raised hopes of reopening the Strait before talks collapsed into renewed strikes. Koyama cautioned against optimism: "What has become clear is that we should not lean too easily into that kind of optimism."japan-forward

Compounding the outlook, Iranian strikes have damaged nearly a fifth of Qatar's LNG production capacity — repairs Koyama said could take years — meaning even a reopening of Hormuz would leave global LNG supply constrained for the foreseeable future.japan-forward