Saudi Arabia Denies Iraqi Claim of Buying 25 Oil Tankers

Saudi Arabia on Tuesday denied an Iraqi claim that it had bought 25 oil tankers, saying the information was inaccurate, after Iraq linked the alleged purchases to a sharp increase in the cost of shipping its crude.

Iraqi Oil Minister Basim Mohammed told a parliamentary session that Saudi Arabia had bought 25 oil tankers worth an estimated $4.5 billion and said the purchases were behind a steep rise in the cost of transporting Iraqi oil. His remarks were published by an Iraqi media outlet on Facebook on Monday.

Mohammed said transport costs had risen from $26 per barrel to $37 per barrel.

Saudi Arabia and Iraq are the two largest oil producers in the Organization of the Petroleum Exporting Countries. A public disagreement between their energy ministers is rare.

In a statement, Saudi Arabia's energy ministry said it had not purchased the tankers and attributed the rise in oil transport costs to several factors, including regional military conflict and disruption to navigation through the Strait of Hormuz.

It said those conditions had pushed shipping costs in the region to "exceptional levels".

The dispute comes as attacks on Saudi cities, energy infrastructure and shipping continue, raising concerns about global oil supplies and threatening the Red Sea, a key alternative export route for Gulf producers while traffic through the Strait of Hormuz remains disrupted.

Iraq ‌has ⁠been among the countries most affected by the closure of the strategic waterway. Traffic through the strait remains well below pre-conflict levels and vessels continue to face attacks in the area.

(Reuters)