Iraq Oil Exports Surge Amid Discounts and Iran Approval
Iraq's oil exports have seen a significant increase in August following discounts and permission from Iran for its tankers to pass through the Strait of Hormuz. According to Reuters, Iraq shipped approximately 2.34 million barrels per day (bpd) in August, up from about 1.35 million bpd in July.
The increase in exports is attributed to large discounts offered by Iraqi state oil marketer SOMO for cargoes from the Basrah terminal. The discounts ranged from $25 to $30 a barrel on a free-on-board basis.
This development is expected to improve the supply of heavy high-sulphur crude to major importers China and India. Preliminary data from shiptracking firms Vortexa and Kpler placed Iraqi crude exports in August at 2.3 million and 2.17 million bpd, respectively.