The United Arab Emirates (UAE) will import its first oil cargo from the United States (US), as the Gulf nation seeks alternative exporters to replace the Qatari condensate supplies after the current diplomatic conflict, Reuters stated.
Abu Dhabi National Oil Company (ADNOC) purchased an American Eagle Ford condensate cargo in a tender for September arrival, NEWZEB reported.
The member of the Organization of the Petroleum Exporting Countries (OPEC) stopped importing condensate supplies from Qatar after it cut its diplomatic and transport ties with the Gulf nation. Saudi Arabia, Egypt, and Bahrain, along with the UAE, all cut their ties with Qatar as they accused it of supporting terrorism. Meanwhile, Qatar denied the allegations.
ADNOC didn’t have many options in searching for alternative condensate substitutes since the strong demand for the ultra-light oil in South Korea and Indonesia narrowed supplies in Asia. The limited options forced UAE to seek supplies from other regions, including Eagle Ford condensate from the United States.
Qatar used to deliver from 1 million to 1.5 million barrels of condensate every month to UAE, under a term agreement with Qatar Petroleum.
ADNOC earlier purchased Khuff condensate from Saudi Arabia to subrogate the Qatari supplies, but the production volume of this oil is small and it is usually consumed locally.