Iraq's oil exports climbed to approximately 2.34 million barrels per day (bpd) in August, up from about 1.35 million bpd in July. This recovery benefits OPEC's second-largest producer, whose exports were sharply reduced by the near-closure of the Strait of Hormuz following the start of the Iran war on February 28.
Ship tracking firms Vortexa and Kpler reported Iraqi crude exports at 2.3 million bpd and 2.17 million bpd, respectively, in August. Pre-war levels, in February, were reported at 3.7 million bpd and 3.362 million bpd by Vortexa and Kpler.
Iraqi state oil marketer SOMO offered August-loading cargoes from the Basrah terminal at discounts of $25 to $30 a barrel on a free-on-board basis. This pricing strategy, along with Iran's approval for tanker passage through the Strait of Hormuz, as reported by Iran's state news agency IRNA, contributed to the export recovery.
The increase in exports improves the supply of heavy high-sulphur crude to major importers China and India. Shipments are expected to rise further in September.
