Iraq's Oil Exports Surge as Profit Margins Boost Trade

Oil exports from Iraq have surged in August, with shipments expected to climb further in September. The improvement is attributed to wide profit margins and Iranian approval for Iraqi tankers to pass through the Strait of Hormuz.

According to industry sources and shipping data, Iraq's oil exports rose to around 2.34 million barrels per day in August from about 1.35 million bpd in July. This increase is below February's pre-war level of 3.7 million bpd, but still significant considering the recent challenges.

Traders are reaping profits of about $10 a barrel after shipping and insurance costs estimated at around $17 a barrel. PetroChina has been one of the major buyers, loading 6 million barrels in July and August from the Basrah terminal. The company has also chartered several tankers to lift Iraqi crude.

Indian refiners are set to benefit from the increased supply of heavy high-sulphur crude. Reliance Industries received 4 million barrels of Basrah crude in August, while Bharat Petroleum Corp expects to receive its first Iraqi oil cargo of this fiscal year soon. Chinese refiners have also purchased at least 16 million barrels of Basrah crude for September arrival.