“Iraq is in a predicament”… More than 40 million barrels of its oil are stuck west of Hormuz
Recent shipping and market data has revealed large quantities of Iraqi crude oil piling up on tankers anchored west of the Strait of Hormuz, amid escalating attacks on ships and continued restrictions on navigation in the vital waterway.
According to shipping tracking data, there are about 163 million barrels of Gulf crude oil stuck in the area west of the Strait, including 43 million Iraqi barrels, as a result of slowing transit operations and increased security risks that have prompted a number of shipping companies to reduce or postpone their trips.
These developments come after four commercial vessels and oil tankers were attacked since May 3, in addition to the targeting of the Fujairah oil hub in the UAE, which has increased market caution and raised transportation and insurance costs for shipments.
The accumulation of unexported shipments increases the pressure on Iraq, which faces a challenge in maintaining the flow of its oil exports, especially given its limited storage capacity and the lack of wide alternative export outlets outside the Gulf.
Shafaq.com