Bloomberg: Chinese refineries switch to Iraqi oil as Gulf supply lines are disrupted
Bloomberg: Chinese refineries switch to Iraqi oil as Gulf supply lines are disrupted
8-20-2026
A Bloomberg report published Thursday, citing unnamed traders, confirmed that Chinese refineries are buying Iraqi crude oil, having recently purchased 8 million barrels of Basra Heavy and Basra Medium crude for immediate delivery. The report, translated by Al-Maalomah News Agency, stated that
“oil flow through the Strait of Hormuz, Iraq’s main export channel, has continued despite the Iranian blockade, although the blockade has reduced these flows to a fraction of what they were previously. The Maritime Traffic Monitoring Service recorded only 95 transits during the week ending August 17, down from 118 the previous week.”
It added that “some oil tankers have found a way to circumvent the blockade by switching off their transponders, making them undetectable by ship tracking systems. However, this has not been enough to bring oil flows significantly closer to pre-war levels.”
He added that “Saudi Arabia was forced to reroute its oil exports, first from the Strait of Hormuz to the Red Sea, and then from the port of Yanbu to Egypt, due to attacks by the Yemeni Houthis on its tankers and energy infrastructure. To avoid these attacks, Saudi Arabia is transporting crude oil northward through the Suez Canal, which has a much smaller transit capacity than the Bab el-Mandeb Strait.”
The report explained that “in contrast, Iraq has managed to increase its exports through the Strait of Hormuz compared to previous months. According to the Iraqi state oil marketing company, Iraq has been exporting crude oil at a rate of two million barrels per day since the beginning of the month. Iraqi crude oil is expected to help Chinese refineries compensate for some of the shortfall in supplies coming from Saudi Arabia, which will take longer to reach their final destination in China due to the situation in the Red Sea and the Bab el-Mandeb Strait.”
almaalomah.me
