Vitol has bought at least 25 million barrels of Iraqi crude in September, two sources told Reuters, as the world's largest oil trader capitalises on its global shipping and logistics clout to help Iraq export oil stranded by the US-Iran war.
The purchases underscore how the war has reshaped Middle East oil trade, allowing companies with access to ships and trading networks to acquire Iraqi crude at steep discounts as Baghdad struggles to maintain exports through the Strait of Hormuz.
Vitol's September allocation stood at about 25 million barrels, said an Iraqi energy official, who asked not to be named as the information is not public.
The company purchased about 25 million to 30 million barrels of September-loading crude, an industry source familiar with Iraqi oil exports said.
Vitol declined to comment, while a spokesperson for Iraqi state-marketer SOMO did not immediately respond to a Reuters request for comment.
Iraq's exports had been severely curtailed in the earlier months of the war due in part to its location at the top of the Persian Gulf and the lack of its own shipping fleet.
The purchase made Vitol the second-largest buyer of Iraqi crude after the UAE's ADNOC, which bought 40 million barrels of Iraqi crude in September after purchasing about 32 million barrels in August.
Iraq exported an average 2.35 million barrels per day (bpd) of crude from its southern ports last month, according to Kpler data. Exports have risen to 2.6 million bpd so far this month, Basra Oil Company chief Bassem Abdul Karim said on Thursday.
In August, Iran granted a number of tankers carrying Iraqi crude permission to transit the Strait of Hormuz after Baghdad repeatedly requested access through various channels, Iran's state news agency IRNA reported.
Iraq has been offering sharp discounts to entice buyers willing to assume the risks of transporting crude through the Strait of Hormuz, where vessels face the threat of Iranian attacks.
A September tender document reviewed by Reuters showed SOMO offering crude at discounts of $15 to $20.80 per barrel to its official selling price, depending on destination. Trading sources said some cargoes sold at even steeper discounts.
(Reporting by Ahmed Rasheed, Dmitry Zhdannikov and Ahmad Ghaddar; Editing by Louise Heavens)