Iraq’s strategy of trucking fuel oil to Syria’s Banias port for onwards export while the Strait of Hormuz is closed is paying off. Exports from Banias averaged 140,000 b/d this month, Kpler data shows, in line with the government’s stated plan of trucking up to 650,000 tons per month (140,000 b/d). Trucking began in early April (MEES, 17 April), and exports from Banias quickly increased to 122,000 b/d in May.
The route is far more important for Iraq than simply monetizing fuel oil, although every dollar counts amid the economic crisis (MEES, 12 June). Iraq’s refineries have high fuel oil yields, and without this export outlet, the country would quickly run out of storage for excess fuel oil and have to reduce refinery runs accordingly, resulting in shortages of diesel and gasoline. (CONTINUED - 370 WORDS)
