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Market Chatter: Vitol Offers Iraqi Crude Outside Hormuz as Some Tankers Resume Exports

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Vitol is offering Iraqi Basrah crude outside the Strait of Hormuz, signaling that some oil cargoes may now be leaving the Persian Gulf, Bloomberg reported Thursday, citing people familiar with the matter.

Sources said Vitol recently marketed Basrah Medium and Basrah Heavy cargoes via ship-to-ship transfers near Fujairah in the UAE.

Since the conflict and blockade around the Strait of Hormuz began, traders have rarely sold Iraqi crude cargoes in spot markets because most Gulf oil exports struggled to leave the region.

Adnoc was among the first Gulf producers to move crude cargoes out through the Strait of Hormuz after shipments stalled across the region.

Iraq loads most Basrah crude from terminals inside the Persian Gulf, while its state-owned State Organization for Marketing of Oil usually sells cargoes through long-term supply agreements and partnerships in oil fields, the report said.

Problems securing tankers for Iraqi shipments have reduced crude exports and weakened SOMO revenue, leading the state oil marketer to offer discounts on cargoes loading this month.

Bloomberg tanker-tracking data showed the tanker Agios Fanourios I reversed course near the US naval line outside the Gulf after carrying 2 million barrels of Basrah crude toward Vietnam earlier this week.

Kpler data showed the Kiara M exited the Strait of Hormuz on May 10 after loading Iraqi crude in April, then transferred the cargo to another tanker near Sohar.

In response to' query, a Vitol spokesperson said that the firm had no 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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