Crude Moves: SOMO Races Against Time

Iraq's state oil marketer, SOMO, has called upon its customers to provide crude oil lifting schedules within 24 hours, according to a document reviewed by Reuters. This request follows reports indicating that Iran has exempted Iraq from restrictions on transit through the Strait of Hormuz.

The document from SOMO, dated April 5, emphasizes the necessity for prompt schedule submissions to ensure the uninterrupted and stable export of crude oil. It highlights the importance of aligning with agreed terms and conditions, citing full operational readiness at all loading terminals, including the Basrah Oil Terminal.

While a resumption of oil exports could potentially boost Iraq's production, which recently dropped to 800,000 barrels per day, doubts linger. Certain market participants express concern about whether shipowners will venture tankers into the Gulf amid ongoing U.S.-Israeli tensions with Iran.