Vitol emerges as one of Iraq's top crude buyers, sources say

• Vitol's 25-30 million barrel purchase makes it Iraq's second-largest crude buyer after UAE's ADNOC, which bought 40 million barrels in September
• Iraq offered September crude at discounts of $15 to $20.80 per barrel to its official selling price, with some cargoes selling at even steeper discounts
• Iraqi exports from southern ports averaged 2.35 million bpd in August and increased to 2.6 million bpd in September after Iran granted transit permission through the Strait of Hormuz

Summary

Vitol, the world's largest oil trading company, has emerged as Iraq's second-largest crude buyer in September 2025, purchasing at least 25-30 million barrels of Iraqi crude oil. The company trails only ADNOC (Abu Dhabi National Oil Company), which bought approximately 40 million barrels in September after 32 million barrels in August.

Key Market Context:

The US-Iran war has severely disrupted Iraqi oil exports through the Strait of Hormuz, creating opportunities for traders with robust shipping and logistics networks. Iraq's lack of its own shipping fleet has compounded export challenges, forcing Baghdad to offer steep discounts to attract buyers willing to navigate war-related risks.

Pricing and Discounts:

Iraq's state oil marketer SOMO has offered September crude at discounts ranging from $15 to $20.80 per barrel below official selling prices, depending on destination. Industry sources indicate some cargoes sold at even deeper discounts, reflecting the premium required for assuming transit risks through Iranian-threatened waters.

Export Volumes:

Iraqi crude exports from southern ports averaged 2.35 million barrels per day (bpd) in August, according to Kpler data. Basra Oil Company reported exports have increased to 2.6 million bpd in September following Iran's decision in August to grant certain Iraqi crude tankers permission to transit the Strait of Hormuz after repeated Baghdad requests.

Market Implications:

The situation highlights how geopolitical conflicts reshape oil trade flows, benefiting major trading houses with logistical capabilities to capitalize on discounted crude while managing elevated risks. The steep discounts represent significant profit opportunities but underscore Iraq's vulnerable export position amid regional tensions.