Iraq's Oil Tanker Company Transports 2 Million Barrels Through Strait of Hormuz

Iraq's state-owned Oil Tanker Company has made a significant move in transporting Iraqi crude through the Strait of Hormuz. According to its director general, Ali Qais Abdul Jabbar, the company transported 2 million barrels aboard a very large crude carrier (VLCC) in what is described as the company's first such operation in decades.

The transportation of oil through the strait allows state oil marketer SOMO greater flexibility in how and where it sells the crude. This move could also give SOMO an opportunity to take advantage of better sales and pricing opportunities, said Jabbar. The Oil Tanker Company is also working to expand its fleet by buying and owning specialized crude oil tankers.

The permission for Iraqi oil tankers to transit the Strait of Hormuz was previously secured from Iran. Iraq has historically relied on delivering its crude at the port of Basra, but this new route could provide a more efficient way of transporting its oil.