Saudi Arabia on Tuesday dismissed claims by senior Iraqi officials that the Gulf state bought 25 oil tankers, stating the assertion is incorrect and fails to reflect the actual market dynamics driving surging transportation costs.
Saudi Arabia's Ministry of Energy said the OPEC+ producer had not purchased the 25 tankers, Iraq's oil minister Basim Mohammed Khudair Al-Abbadi and State Organization for Marketing of Oil Chairman and Director General Ali Nizar Al-Shatari said during a parliamentary session.
The ministry said the sharp rise in regional oil transportation costs was instead driven by the Middle East conflict, Iranian attacks on vessels, the closure of the Strait of Hormuz, higher insurance costs, and a decline in vessels willing to operate in the region.
The comments come as Saudi Arabia's crude export infrastructure adapts to disruption around the Hormuz. Kpler data showed six very large crude carriers loaded about 12 million barrels at Ras Tanura and Juaymah on Sept. 21, marking the busiest loading day at Ras Tanura since before the war.
Kpler's Risk & Compliance data also showed that some of the vessels involved had recorded dark ship-to-ship transfers or port calls during the previous six weeks.