Iraq expects to start transporting crude oil by lorry to Syria from mid-October

Iraq anticipates initiating crude oil transportation via trucks to Syria from mid-October, according to Bloomberg. The move is anticipated to enhance Iraq's energy exports, which have been impeded by conflicts in the Strait of Hormuz following the Iran war. The oil will be dispatched to a Mediterranean port via lorries following Iraq's request for assistance from Syrian authorities, reported Yousef Qiblawy, CEO of the state-owned Syrian Petroleum.

The bilateral agreement between the two nations is reportedly "almost finalized." Qiblawy further stated that the "first chain of trucks with crude will arrive in Syria as soon as possible, hopefully by mid-October." This development follows a similar coordination in late September, where Iraq began importing petrol through Syria.

Prior to April, Syria had become the primary route for Iraqi fuel oil exports, partially offsetting the disruptions in shipments caused by the war in Iran. As of April, approximately 2.1 million tonnes of Iraqi fuel oil had been transported to Syria's Baniyas port. An Iraqi Oil Ministry official disclosed to The National that the initial shipment, amounting to 32,000 tonnes, will be unloaded at the Baniyas refinery and subsequently transported to Iraq using lorries.

The ongoing conflict since February has placed Iraq in its most challenging economic and security situation in recent years. As Opec's second-largest producer, Iraq's oil revenue constitutes a significant portion of its economy, with around 90% of its exports previously crossing the Strait of Hormuz. However, the war has disrupted these exports, which previously totaled about 3.3 million barrels per day before the conflict.

The agreements between Iraq and Syria signify a substantial strengthening of their relationship, particularly as Iraq grapples with the challenges posed by the Strait of Hormuz and the US's push for closer ties between the two countries. The Strait of Hormuz, through which approximately one-fifth of the world's energy exports passed prior to the war, remains a critical concern amid the ongoing eight-month conflict.

On September 30, the seven-day moving average for crude exports from the Gulf stood at 18.3 million barrels per day, compared to the average 18 million bpd in the 12 months preceding the Iran war.