Among them is Iraq… Oil-producing countries prepare to resume exports through the Strait of Hormuz
Informed economic sources reported on Friday that oil-producing countries in the Middle East, including Iraq, have contacted Asian refineries to prepare for the resumption of crude exports during the current and following months, following the ceasefire agreement between Iran and the United States.
Reuters quoted three sources as saying that Middle Eastern producers have asked Asian refineries to submit crude oil loading programs for April and May, in preparation for resuming shipments through the Strait of Hormuz.
The two-week ceasefire agreement between the United States and Iran, announced late Tuesday/early Wednesday, raised hopes of reopening the strait through which about 20% of the world’s oil and liquefied natural gas supplies passed before the war.
There has been no indication so far that Tehran will end its near-total closure of the vital waterway, a closure that has caused a sharp rise in energy prices.
Two sources said that Saudi Aramco has asked its customers to submit requests to load shipments from the ports of Yanbu and Ras Tanura in May.
One of them explained that this matter depends on the resumption of exports from the eastern port of Ras Tanura, which requires ships to pass through the Strait of Hormuz.
The sources requested anonymity because they were not authorized to speak to the media.
Aramco informed buyers last month that crude oil shipments in April could only originate from the western port of Yanbu on the Red Sea. The company’s oil production flows to Yanbu via the East-West pipeline.
However, the Saudi Press Agency reported yesterday, Thursday, citing an official source in the Ministry of Energy, that attacks on energy facilities in the country caused a reduction in the Kingdom’s oil production by about 600,000 barrels per day, and a decrease in the flow of crude oil through the (East-West) pipeline by about 700,000 barrels per day.
Earlier this week, Iraq’s state oil marketing company SOMO asked its customers to submit loading schedules following media reports that Iran had exempted Iraq from restrictions on passage through the Strait of Hormuz.
Asian refining and trading companies are looking for tankers to load crude oil from the Gulf region in the coming days following the ceasefire announcement.
Commodity trader Glencore and Taiwan’s state-owned refiner CPC have each chartered a tanker to load crude oil from the Middle East to Asia, and Indian and South Korean refiners are also looking for tankers to load Iraqi crude this month.
On the other hand, two sources stated that Kuwait Oil Company has set shipping dates for Kuwaiti crude for export on a delivery-on-board (DOB) basis in April.
One of them said that shipment nominations are being prepared and will be determined based on customers’ ability to receive shipments.
Shafaq.com