Beijing recorded a sharp decline in Iraqi oil imports during May
A mysterious explosion targets a foreign ship near Umm Qasr
Baghdad – Nada Shawkat
Basra – Amjad Nasser
A security source reported that a giant foreign cargo ship was exposed to a sudden explosion in territorial waters near the port of Umm Qasr, hours after it had completed unloading its cargo. The source said yesterday that (the ship flying the Panama flag was exposed to an explosion while it was near marine buoy 5 in Iraqi territorial waters, after it had finished unloading operations in the port of Umm Qasr). He added, “The competent authorities were quick to open an investigation to determine the circumstances of the accident and determine its causes.” No accurate information is yet available regarding the extent of damage or losses resulting from the explosion.
The first Chinese cargo ship also docked in the northern port of Umm Qasr, followed by the arrival of the giant ship, an indication of the gradual restoration of maritime transport activity and the return of shipping lines to Iraqi ports after the resumption of navigation through the Strait of Hormuz. Director General of the General Company for Iraqi Ports, Farhan Al-Fartusi, said in a statement received by Al-Zaman yesterday, “The arrival of the Chinese cargo ship to the northern port of Umm Qasr represents a positive indicator of the stability of maritime transport movement and the continued smooth flow of goods to Iraqi ports, despite the challenges that the region has witnessed during the past period.” He added, “This reflects the readiness of Iraqi ports to deal with various operational variables, and confirms the confidence of international companies and shipping lines in the efficiency of maritime and logistical services provided by Iraqi ports.” Al-Fartusi explained, “The ship carries a diverse cargo that includes materials and equipment designated for the oil sector, in addition to other commercial goods, with a total weight of 29,720 tons.”
Stressing that (its arrival contributes to enhancing commercial activity and import movement through Iraqi ports, which supports the flow of supply chains and consolidates the position of Umm Qasr Port as one of the country’s most important maritime ports). Al-Fartousi continued, “The ports of Umm Qasr also witnessed the arrival of the giant ship after an absence that lasted more than three months as a result of the war and the closure of the Strait of Hormuz.” He stressed that (the ship came from Dubai, and is scheduled to carry 96 containers designated entirely for export, not import). He continued by saying that (the shipments include food items, including dates, soft drinks, and spare materials that are being exported from Iraq to foreign markets). While recent data showed a significant decline in China’s imports of Iraqi oil during the month of May, in light of the turmoil in global energy markets resulting from tensions in the Middle East and the closure of the Strait of Hormuz. Yesterday’s reports indicated that (China’s imports of Iraqi oil decreased to only about 60,000 barrels per day during May, compared to 790,000 barrels per day last February, which reflects a sharp decline in Iraqi crude flows to the largest oil importer in the world). Confirming that (China’s total imports of seaborne crude oil fell to 6.36 million barrels per day during May, which is the lowest level in about ten years, compared to 8.10 million barrels per day in April). The reports attributed this decline to the rise in global oil prices after the escalation of tensions in the Middle East, in addition to supply disruptions resulting from the disruption of shipments coming from some major producers, including Iraq and Kuwait. She added, “Chinese refineries reduced their purchases with the rise in prices, in addition to supplies being affected by logistical restrictions and the closure of major shipping lanes, which prompted Beijing to rearrange energy sources and reduce imports from a number of producing countries.” Reports suggested that “in the coming period, China will resort to increasing its imports again, reducing the operation of refineries, or withdrawing from its strategic reserves to compensate for the shortage in supplies.” Oil prices rose by more than 2 percent in early trading, driven by escalating security tensions in Lebanon after the incursion of Israeli forces into the south of the country, which raised new concerns about the stability of supplies in the Middle East region. Brent crude oil recorded an increase of $2.16, or 2.37 percent, to reach $93.28 per barrel, while US West Texas Intermediate crude rose by $2.37, or 2.71 percent, to reach $89.73 per barrel. The gains came after the escalation of confrontations between Israel and Hezbollah, despite the announcement of a ceasefire more than six weeks ago, which increased fears of the expansion of the conflict and its impact on the movement of energy in the region. Concerns about the security of navigation in the Strait of Hormuz, through which about a fifth of the world’s oil and gas supplies pass, also fueled the rise in prices amid reports of continuing threats that could delay the return of normal flows of oil supplies.
