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Market Chatter: Iraq Taps Syria as New Export Corridor for Crude, Naphtha

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Iraq will ship crude and naphtha through Syrian ports, as it diversifies its oil export routes following supply disruptions caused by the US-Iran war, Reuters reported Friday, citing energy officials from both countries.

Iraqi oil ministry spokesperson Saleem al-Rikabi told Reuters that the government was discussing with Syria the expansion of its export corridors through the State Organization for Marketing of Oil, the state oil marketer. Iraq has reportedly trucked fuel oil across Syria to export the commodity at the Port of Baniyas on the Mediterranean coast during the closure of the Strait of Hormuz.

To accommodate crude and naphtha, Syria will open two more unloading areas in Baniyas within a week, according to a Syrian energy ministry official cited by the news agency. This could reportedly enable the transport of about 50,000 barrels of crude per day beginning in early July.

Iraqi and Syrian energy ministries did not immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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