Iraq halted contracts to import diesel after the improve of some refineries helped bolster native output, placing the nation on observe for gas self sufficiency.
The nation wound down buy offers on the finish of final yr and hasn’t purchased the gas underneath long-term contracts to date in 2024, in keeping with merchants concerned available in the market. It has purchased three diesel cargoes this yr, in keeping with market information supplier Vortexa, however merchants stated these have been spot shipments.
Iraq, nevertheless, remains to be shopping for gasoline underneath time period offers, in keeping with the merchants who requested to not be recognized as a result of the data isn’t public. It’s concentrating on eliminating imports of the motor gas as early as this yr. The nation is refurbishing refineries that have been broken throughout 20 years of warfare, with the Al-Shamal plant restarting in 2024, and others to comply with, Hamid Younis, deputy oil minister for refining affairs, stated in February.
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A spokesman for the oil ministry couldn’t instantly be reached for remark exterior regular enterprise hours.
Iraq imported 2.83 million barrels of diesel final yr, or about 7,800 barrels a day, in keeping with Vortexa. It additionally tendered to purchase about 55,000 barrels a day of gasoline on common by way of the tip of this yr, in keeping with merchants. That’s up from about 43,000 barrels of seaborne gasoline provided day by day on common final yr, in keeping with Vortexa.
Baghdad is shopping for gasoline from buying and selling models of Saudi Aramco, Reliance Industries Ltd. and Oman’s state vitality firm OQ, amongst others, in keeping with merchants and information from ship monitoring agency Vortexa. These firms are supplying underneath long-term contracts that Iraq continued this yr, the merchants stated.
The nation has a designed refining capability is 1.26 million barrels a day, although precise processing is decrease.
Iraq is the second-largest crude oil producer within the Group of Petroleum Exporting International locations, behind Saudi Arabia. Iraq’s oil output has been in focus in current months because the nation struggles to fulfill a restrict pledged to the OPEC+ group that features allied nations like Russia. The quantity of crude the nation truly refines together with its exports are a few of the primary elements used to evaluate Iraq’s manufacturing.
