Shafaq News- Baghdad
Chinese and Indian state refiners are struggling tosecure tankers to transport Iraqi Basrah crude amid elevated freight rates followingthe closure of the Strait of Hormuz, which carries around 20% of global oilsupplies, according to company and shipping sources cited by Reuters.
PetroChina and Indian Oil Corp (IOC) have been unableto charter very large crude carriers (VLCCs) for late June shipments from Iraq,while Chinese refiner Sinochem is also seeking tonnage. Offers for cargoesloading from Iraq's Basrah Oil Terminal between June 25 and 30 reached 650 to750 worldscale points, a standard shipping-rate benchmark, nearly three timeshigher than levels prevailing before tensions between the United States,Israel, and Iran escalated in late February.
“There are tankers available, but the problem is it'stoo expensive and there is no guarantee you can exit the strait,” a PetroChinaofficial remarked.
A shipping source also expected freight costs toremain high despite the recent US-Iran agreement aimed at reopening thewaterway and ending military operations across all fronts, including Lebanon.
: US, Iran sign remote memorandum to end war
Sinochem was still looking for a VLCC on Thursday fordeliveries to Asia, while IOC received no offers in a tender issued last weekfor cargoes bound for Paradip port on India's east coast and later declaredforce majeure.
The Strait of Hormuz has remained largely closed sinceFeb. 28 after Iran restricted maritime traffic in response to the US-Israeliwar launched against it. Washington and Tehran have since agreed to restoreshipping under a memorandum scheduled to be signed in Switzerland on June 19.
Iraq, OPEC's second-largest producer, exports about95% of its crude through southern terminals, making it particularly vulnerableto prolonged disruption in Gulf shipping. Although Baghdad is seeking to expandnorthern export routes through Turkiye, analysts told Reuters thatinfrastructure, political, and security challenges continue to constrain thosealternatives.
: Iraq's oil lifeline is blocked: The crisis runs deeper than Hormuz