The Dynamics of Iraq’s Crude Flows to Asia and Europe

EOA’ Main Takeaway:

The idea that some oil producers are losing market shares in Asia, therefore generating a surplus in the oil market, is inaccurate. Losses in one market are being offset by gains in others.

In our Weekly Newsletter published on May 30, we highlighted the drop in India’s crude oil imports from Iraq relative to the same period last year, as Asia’s second-biggest crude importer continues to seize on cheap Russian barrels. However, Iraq is neither losing its market share in the Indian market due to competition from Russia’s oil nor is it reducing exports because of that. Figure (1) below shows how Iraq’s Basrah crude exports from its southern terminals have been virtually steady.  The reduced crude volumes to India are being offset by exports to other markets.  Today, we look at Iraqi crude flows to China, Greece, Italy, and the Netherlands.

Iraq’s Basrah Crude Exports to China