Saudi Arabia on Tuesday rejected an Iraqi claim that it had purchased 25 oil tankers, calling the information false. Iraq had linked the alleged purchases to a sharp rise in the cost of shipping its crude.
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Basim, the oil minister of Iraq during a parliamentary session revealed that Saudi Arabia had purchased 25 oil tankers valued at an estimated $4.5 billion. He said that these acquisitions were the reason for the sharp increase in the price of carrying Iraqi oil. On Monday, an Iraqi media organization posted his comments on Facebook.
According to Mohammed, the cost of transportation has increased from $26 to $37 a barrel. The two biggest oil producers in the Organization of Petroleum Organization are Saudi Arabia and Iraq exporting nations. It is uncommon for their energy ministers to publicly disagree.
Saudi Arabia's energy ministry stated in a statement that it had not bought the tankers and cited a number of reasons for the increase in oil transportation costs, such as the armed confrontation in the region and the difficulty of navigating the Strait of Hormuz.
It said that the region's shipping prices had reached "exceptional levels" as a result of such circumstances.
The conflict coincides with ongoing attacks on Saudi cities, ships, and energy infrastructure, which raises questions about the world's oil supply and jeopardizes the Red Sea, a vital alternate export route for Gulf producers while traffic via the Strait of Hormuz is still obstructed.
One of the nations most impacted by the crucial waterway's shutdown is Iraq. Vessels continue to be attacked in the region, and traffic across the strait is still far lower than it was before the fighting.
