Vitol Buys Up to 30 Million Barrels of Discounted Iraqi Crude
Iraq set September cargo prices $15 to $20.80 below official selling prices as tanker access through the Strait of Hormuz tightened.
Vitol purchased between 25 million and 30 million barrels of Iraqi crude scheduled for September loading, securing discounted supply as tanker access through the Strait of Hormuz tightened.
Iraq’s State Oil Marketing Organization (SOMO) set September cargo prices $15 to $20.80 below its official selling prices. Some shipments traded at even deeper discounts.
The purchase places Vitol among Iraq’s largest buyers for the month. Abu Dhabi National Oil Co. (ADNOC) agreed to buy 40 million barrels for September after receiving an allocation of 32 million barrels in August. ADNOC ultimately lifted about 20 million barrels of that August volume.
Iraq’s southern crude exports averaged 2.35 million barrels per day in August and about 2.6 million barrels per day during September through the report date. Most exports leave through southern terminals inside the Persian Gulf, making tanker access through Hormuz critical.
Iraq has also tested an alternative route by moving about 38,000 barrels north toward Kirkuk over two days using 209 tanker trucks. Northern-route flows were near 200,000 barrels per day.
