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Saudi Energy Ministry denies buying 25 oil tankers, rejects Iraqi claim on transport costs
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Saudi Arabia's Energy Ministry issued a statement on February 22 denying reports that it purchased 25 oil tankers worth approximately $4.5 billion, rejecting Iraqi Oil Minister Basim Muhammad Khudair al-Abadi's claim that the purchase drove up Iraq's crude oil transport costs. According to Reuters, al-Abadi told the Iraqi parliament that the Saudi tanker acquisition caused Iraq's shipping costs to rise from about $26 per barrel to $37 per barrel. The Saudi ministry attributed the cost increase to regional tensions, disrupted shipping through the Strait of Hormuz, and higher insurance and risk premiums. The Strait of Hormuz, a critical chokepoint for global oil shipments, has seen significantly reduced vessel traffic since the outbreak of war in Iran in February, with Iraq being one of the most affected countries due to its reliance on the waterway for crude exports.
Source report
Riyadh, Saudi Arabia — Saudi Arabia's Ministry of Energy issued a statement on the 22nd denying reports that the kingdom had purchased 25 oil tankers, dismissing as inaccurate Iraqi claims that such a move had driven up Iraq's crude oil shipping costs.
According to Reuters, an Iraqi media outlet reported on the 21st that Iraqi Oil Minister Basim Mohammed Khudair al-Abadi had told parliament that Saudi Arabia had acquired 25 oil tankers at a total cost of approximately $4.5 billion. The minister reportedly claimed that this purchase had led to a significant increase in Iraq's crude oil transportation costs, with freight rates rising from roughly $26 per barrel to around $37 per barrel.
In its statement on the 22nd, the Saudi Ministry of Energy said that Khudair's claims regarding Saudi Arabia's purchase of oil tankers were unfounded. It attributed the sharp rise in crude oil shipping costs to the following factors:
- Escalation of regional tensions
- Disruption of shipping through the Strait of Hormuz
- Substantial increases in shipping risks and insurance premiums
The Strait of Hormuz is one of the world's most critical chokepoints for energy transportation, handling approximately one-fifth of global crude oil and refined product shipments. Before the outbreak of the Iran conflict in February this year, roughly 125 large commercial vessels, including energy carriers, passed through the strait daily. Currently, navigation through the Strait of Hormuz remains severely disrupted, with vessel traffic far below pre-conflict levels. Reuters noted that Iraq is among the countries most heavily affected by the strait's navigational challenges.
Source
新华社Eastern
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Saudi Arabia Denies Buying 25 Oil Tankers, Rejects Iraqi Claim on Transport Costs