Saudi Arabia denies tanker purchases raised Iraqi oil transport costs

Shafaq News- Riyadh/ Baghdad

Saudi Arabia's Energy Ministry denied on Tuesday that the kingdom had purchased 25 oil tankers, rejecting claims that such a purchase drove up the cost of transporting Iraqi crude.

The ministry clarified that its statement does not, in any way, affect "the kingdom's full right to make commercial and investment decisions in line with its needs and interests." It attributed the sharp rise in oil transport costs to several factors, including regional military escalation, officially declared Iranian attacks on vessels, disruptions to shipping through the Strait of Hormuz, a steep increase in shipping risks and insurance costs, and a decline in the number of tankers willing to operate in the region. "These conditions have pushed regional shipping costs to exceptional levels, and attributing the rise in Iraqi oil transport costs to Saudi Arabia does not reflect the actual factors behind the increase.” 

Earlier, Iraqi Oil Minister Bassem al-Abadi said Saudi Arabia purchased 25 oil tankers for around $4.5 billion and raised transport costs on Iraq from $26 to $37 per barrel. "We cannot disclose these challenges in the media."

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