Iraq's crude exports increased in August, driven by heavy discounts and renewed access to the Strait of Hormuz following Tehran's approval for tanker traffic.
Preliminary tracking data from Vortexa showed Iraqi oil shipments at about 2.3 million barrels per day (bpd) in August, up from roughly 1.35 million bpd in July but still below the 3.7 million bpd recorded before the February 28 conflict with Iran. Kpler's estimates placed August exports at 2.17 million bpd, also higher than July but below the pre-war 3.362 million bpd.
State oil marketer SOMO offered August-loading cargoes from Basra at discounts of $25 to $30 per barrel on a free-on-board basis, supporting the recovery. The resumption of exports has improved supply of heavy, high-sulfur crude to major buyers including China and India.
The near-closure of the Strait of Hormuz after the February 28 start of hostilities had severely constrained Iraqi oil flows. Tehran's recent permission for tankers to transit the strait has enabled the partial rebound in shipments, though volumes remain below pre-war levels. Iraq ranks as the second-largest producer within OPEC.
