The Strategist

Bloomberg: Russia pushes Iraq out of Asian oil market

06/24/2022 - 08:15

Due to significant price reductions on Russian energy resources, Asian importers started to choose Russia, which hurt Iraq's position on the market. According to Bloomberg, China and India, historically the primary consumers of Iraqi oil, increased Russian supply of the commodity.

The agency reported that "no spot purchases of Iraqi Basrah Medium or Basrah Heavy crude have been made so far in the current trading cycle in Asia, and no tender for shale oil has been finalised."

According to Bloomberg, Iraq is presently considering discounts for importers to increase the appeal of its resources. The uniqueness of Iraq's oil exports, which are more challenging to refine into gasoline or diesel fuel than Russian crude, is considered to be another cause in the country's loss of former market positions.

While Iraq continues to be India's top oil exporter, Russia has dramatically increased its exports to that country (from 277,000 bpd in April to 819,000 bpd in May), moving it up to second place. China's imports of Russian oil rose by 55% year over year in May of this year, and by the end of the month, the raw material supply had reached a new high.