Saudi Ministry Denies Purchasing Oil Tankers Amid Iraq Transport Cost Dispute
Saudi Arabia's Energy Ministry has denied purchasing 25 oil tankers, contradicting claims by Iraqi Oil Minister Bassem al-Abadi that this purchase drove up the cost of transporting Iraqi crude.
The ministry stated that its decision to make commercial and investment choices does not affect its right to do so in line with its needs and interests. It attributed the sharp rise in oil transport costs to several factors, including regional military escalation, officially declared Iranian attacks on vessels, disruptions to shipping through the Strait of Hormuz, a steep increase in shipping risks and insurance costs.
The ministry emphasized that these conditions have pushed regional shipping costs to exceptional levels, making it unfair to attribute the rise in Iraqi oil transport costs solely to Saudi Arabia's actions. It also clarified that a decline in the number of tankers willing to operate in the region has contributed significantly to the increase in costs.