TotalEnergies is offering millions of barrels of Iraq's Basrah Medium and Basrah Heavy crudes for prompt delivery to Asia this month and next, according to traders who received the offers and spoke to Bloomberg on Friday. The move comes as Iraq, among the Persian Gulf producers most affected by the Strait of Hormuz closure, has been offering crude on the spot market with deep discounts and on a loading basis.
Offers are structured so that buyers must secure empty tankers to move inbound into the Gulf through the Strait of Hormuz. This requirement adds a layer of logistical complexity and risk for Asian refiners, many of whom rely on the waterway for a significant portion of their crude supply.
The Iraqi crude being marketed includes both Basrah Medium and Basrah Heavy grades, key feedstocks for Asian refineries. TotalEnergies, as a major commodity trader, is leveraging its infrastructure and relationships to move the barrels, though specific pricing details and volumes were not disclosed in the offers seen by traders.
The Strait of Hormuz disruption has reshaped crude flows from the Persian Gulf, with producers like Iraq resorting to deep discounts and creative delivery terms to maintain market share. Iran's threats to block the strait have heightened shipping insurance costs and reduced vessel availability, pressuring Iraqi export volumes.
This strategy highlights the growing bifurcation in global oil markets: while some OPEC members struggle with export logistics, others with alternative routes are gaining share. The long-term effect may accelerate Asian buyers' diversification toward suppliers outside the Persian Gulf, despite the discounts on offer.