Mediterranean aframax market on alert after Iraq halts oil exports (LL)

(31-12-2011)

IRAQ’s oil exports to the Turkish port of Ceyhan were suspended yesterday, prompting concerns that spot shipping charter rates from the port to Europe could nosedive when rates are reported again by the Baltic Exchange after the Christmas holiday break.Oil exports through the 600-mile Kirkuk-Ceyhan pipeline were halted due to “technical reasons”, a spokesman from Iraq’s oil ministry said in a statement.

The flow of oil has since started up again, with daily shipments through the pipeline from northern Iraq close to hitting pre-stoppage levels of 600,000 barrels per day, according to the oil ministry. The volume is equivalent to one fully-loaded aframax crude tanker per day.The stoppage follows three others in December due to similar technical reasons, the oil ministry said.

The disruption comes as Iraq continues to build up its presence in the global oil market following the war that deposed Saddam Hussein and the US’ decision to withdraw its troops from the country earlier this month.