Vitol Scoops Up 25 Million Barrels of Discounted Iraqi Crude
Vitol has bought at least 25 million barrels of Iraqi crude for September loading, making the world’s largest independent oil trader Iraq’s second-biggest buyer behind ADNOC as Baghdad pays steep discounts to keep barrels moving through the Strait of Hormuz. Iraq’s SOMO offered September crude at discounts of $15 to $20.80 per barrel to its official selling prices, according to a tender document…
Vitol has made a significant purchase of 25 million barrels of discounted Iraqi crude, marking the company as Iraq's second-largest buyer, following ADNOC. Iraq’s SOMO offered a discount of $15 to $20.80 per barrel compared to its standard prices. The trade deal is crucial for Iraq as it struggles with logistical challenges, including the lack of a substantial tanker fleet and the high freight costs due to the Strait of Hormuz's restricted traffic.
ADNOC has also committed to a larger purchase of 40 million barrels, highlighting the demand for Iraqi crude. Iraq's exports from southern ports have increased from 2.35 million barrels per day in August to around 2.6 million barrels per day in September. Additionally, Iran has started allowing tankers to carry Iraqi crude through Hormuz since August.
Iraq is exploring alternative ways to export its crude, including trucking it to northern ports for shipment through Turkey's Ceyhan port.
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