Logistic constraints hinder Iraq from filling Russia's gap in the oil market-expert

Shafaq News/ Iraq's limited export capacity would make it difficult to honor requests for additional crude supply from buyers seeking alternatives to Russian volumes, economic expert Manar al-Obaidi said on Wednesday.

Many European buyers have shied away from buying Russian crude amid biting sanctions on Moscow over its invasion of Ukraine. Although sanctions are not targeting Russian oil directly, measures taken against Russian banks have created uncertainty about financing of trade. This, together with rising transportation costs in the Black Sea, has eroded demand for Russian crude.

"The effects of the Russian-Ukrainian war are real, indeed, but will likely be short-lived," he said, "the sanctions on Russian oil created a demand-supply mismatch, bringing the prices higher. Once the war is over, the prices will recede."

"Iraq does not have the logistic capacity to commensurate for higher output. Even though it can overcome production challenges, limited loading capacity at the ports and dwindling supply lines from Basra impedes proper delivery," he said.