Saudi energy ministry denies reports of purchasing 25 oil tankers

The Ministry of Energy has clarified that Saudi Arabia has not purchased 25 oil tankers, rejecting claims made by Iraqi Oil Minister Bassem Mohammed Khudair Al-Abadi and Ali Nazar Al-Shatari, chairman and director general of Iraq’s State Oil Marketing Organization (SOMO), during a session of the Iraqi parliament. The ministry denied any link between Saudi purchases of tankers and the rise in Iraqi oil transport costs.

The ministry stressed that this information is incorrect, emphasizing that this clarification does not in any way diminish Saudi Arabia’s full right to make commercial and investment decisions as it deems appropriate, according to its needs and interests.

The ministry added that the sharp increase in oil transport costs is due to factors different from those cited by the Iraqi oil minister and SOMO’s director general. These include heightened military tensions in the region, declared Iranian attacks on vessels, disruptions to navigation through the Strait of Hormuz, and the resulting surge in shipping risks and insurance costs, as well as a decline in the number of tankers willing to operate in the area.

The ministry noted that these circumstances have driven shipping costs in the region to exceptional levels, affirming that attributing the rise in Iraqi oil transport costs to Saudi Arabia does not reflect the true causes behind the increase.