Iraq's Oil Exports Surge as Discounts Attract Buyers

Iraq's oil exports have seen significant growth in August, reaching 2.17 million barrels of crude oil per day, according to Kpler's preliminary data. This marks the third consecutive month of increased exports for Iraq, a major producer and member of OPEC.

The improvement is attributed to several factors, including heavy discounts offered by Iraq's state-owned marketer SOMO to buyers. Reports indicate that SOMO was offering August-loading products from the Basrah terminal at discounts between $25 and $30 per barrel, with free-onboard. This has attracted buyers such as PetroChina, Zhenhua Oil, and TotalEnergies.

Traders are reportedly making profits of around $10 per barrel by reselling the oil after shipping and insurance costs are factored in. Chinese state-owned oil majors have been actively purchasing Iraqi crude oil, with PetroChina chartering multiple tankers to transport the oil from Iraq's Basrah terminal.