Iraq’s 14 Million Barrels of Trapped Oil Escape Through Hormuz

Iraqi oil stranded by the Middle East conflict has escaped the Persian Gulf over the past 10 days as transit via the Strait of Hormuz eased during an uneasy US-Iran ceasefire.

Vessels carrying about 14 million barrels of Iraqi oil exited the Gulf in the latter part of June and are now carrying crude to buyers in Asia, Europe and the US, according to tanker tracking data compiled by Bloomberg. That's the equivalent of about 1.4 million barrels a day over the 10-day period.

All cargoes loaded since late February — and that were stuck inside the Gulf — have now sailed toward their final destination, the data show.

Hundreds of ships were blocked inside the Gulf after the US and Israel started attacks on Feb. 28, resulting in Iran's near closure of Hormuz, the vital choke point for about a fifth of the world's oil and gas supplies. Shipping has picked up after the US and Iran agreed to pause hostilities in an effort to reach a lasting peace deal.

Some vessels that loaded in February and March and had been blocked in the Gulf did manage to exit via Hormuz earlier in the conflict, tanker tracking data show.

Iraq's finances were among the hardest hit of Persian Gulf nations from the closure of Hormuz. That's prompted the government to step up its push for bigger OPEC production quotas as it seeks to recoup lost oil revenues.

Iraq has been loading additional tankers at its Basrah oil terminal in the northern Gulf, while trying to ramp up production as flows increase. Still, a lack of storage and limited access to tankers, forced the OPEC producer to again cut output.

Tankers have loaded about 6 million barrels of Iraqi crude so far this month, with one vessel currently moored at Basrah, according to Bloomberg tanker tracking. That's an increase over the last two months, but remains a fraction of the roughly 100 million barrels Iraq would normally export each month before the conflict.

https://finance.yahoo.com/energy/articles/iraq-14-million-barrels-trapped-142440761.html