Dubai \u2013 Business News Report|| Vitol strengthened its position in the Iraqi oil market by purchasing at least 25 million barrels of crude during September 2026. This transaction highlights major traders’ efforts to capitalize on supply disruptions in the Gulf region.<\/p>\n
The world’s largest independent oil trading company is utilizing its shipping and logistical capacities to provide export routes for Iraqi crude. These operations occur amid challenges facing tanker movements through the Strait of Hormuz due to tensions between the United States and Iran.<\/p>\n
Purchases come as Baghdad seeks to maintain oil flows to global markets. Exports declined in the early months of the conflict, with difficulties securing transport from Iraq’s southern ports. The deal reveals shifts in Middle Eastern oil trade, where shipping availability now influences access to crude.<\/p>\n
Vitol bought between 25 and 30 million barrels of Iraqi crude scheduled for loading in September. An Iraqi energy sector official stated the company’s share reached approximately 25 million barrels, according to Reuters reports. This volume positions Vitol as the second-largest buyer of Iraqi oil this month.<\/p>\n
Abu Dhabi National Oil Company (ADNOC) remains the top purchaser, acquiring about 40 million barrels. This compares to roughly 32 million barrels purchased in August. The moves occur against a backdrop of reduced Iraqi exports, exacerbated by port locations in the northern Gulf and the lack of a national fleet.<\/p>\n
Crude exports from southern ports averaged 2.35 million barrels per day last month, per Kpler data. Basra Oil Company head Basim Abdul Karim noted that exports rose to 2.6 million barrels per day so far in September, indicating improved flows despite navigation challenges.<\/p>\n
Iran granted Iraqi tankers passage permits through the Strait of Hormuz in August following repeated requests from Baghdad. Shipments face additional risks from potential Iranian attacks, prompting buyers to demand price reductions that offset higher transport and insurance costs.<\/p>\n
The State Organization for Marketing of Petroleum (SOMO) offered discounts ranging from $15 to $20.80 per barrel below official prices to attract companies willing to handle shipping risks. Some cargoes were sold with even larger discounts as Iraq sought buyers capable of managing maritime transport hurdles.<\/p>\n
SOMO Director General Ali Nizar Al-Shatri confirmed that Iraq sells to entities able to load and move crude outside the strait. Operations rely on shuttle arrangements, using short trips within the Gulf before transferring cargo to larger vessels beyond the chokepoint.<\/p>\n
Shipping costs highlight regional trade difficulties. TotalEnergies CEO Patrick Pouyann\u00e9 previously stated that transporting a Gulf crude shipment via a Very Large Crude Carrier (VLCC) can cost around $20 million round-trip. Each VLCC carries two million barrels, equating to roughly $10 per barrel in transport and security expenses.<\/p>\n
These costs are significant compared to Iraqi discounts, which reached $25 to $30 per barrel for some cargoes. The gap between discounts and transport costs reflects commercial calculations as logistical networks become vital for navigating Gulf navigation disruptions.<\/p>\n
This story was produced in the newsroom from the disclosed sources named above.<\/em><\/p>\n