For the first time since the start of the war with Iran, Iraq is offering buyers of its oil the option of receiving deliveries outside the Persian Gulf. Bloomberg reports, according to UNN.
Details
The country’s state-owned oil company SOMO is offering Basrah Medium and Heavy crude, which can be picked up next month through a ship-to-ship transfer near the coast of Oman as part of a tender. This marks a shift in course for Iraq, which, after the conflict began, offered steep discounts to encourage traders and refineries to load its oil in the depths of the gulf
It is noted that it is not yet entirely clear how SOMO plans to transport the oil out of the Persian Gulf, but during the war, a number of companies, including Vitol Group and TotalEnergies SE, managed to deliver Iraqi oil to consumers worldwide.
The offer to load Iraqi oil outside the Strait of Hormuz underscores that oil continues to flow from the Persian Gulf despite the constant threat of attacks. Tankers often pass through the narrow strait with their transponders switched off to avoid detection, while significant supply volumes help keep oil prices under control.
We remind you
Oil prices fell on Thursday, extending a series of declines, amid expectations that talks between Iran and Qatar could open the Strait of Hormuz and reduce supply disruptions caused by the war in the Middle East.