Vitol Secures 25 Million Barrels of Discounted Iraqi Crude

Iraq has been struggling to export its crude oil due to logistical challenges and discounts offered by Baghdad have helped attract buyers. Vitol, the world's largest independent oil trader, has purchased at least 25 million barrels of Iraqi crude for September loading.

The discount offered by Iraq's SOMO ranged from $15 to $20.80 per barrel below its official selling prices, with some cargoes sold at even larger discounts. This move is crucial as Iraq relies on foreign tankers to transport its oil through the Strait of Hormuz, which has seen reduced traffic and increased freight costs.

ADNOC, another major buyer, agreed to purchase 40 million barrels for September after being allocated 32 million barrels in August. Vitol's purchase will make it Iraq's second-largest buyer behind ADNOC.