Iraq is using thousands of trucks to transport fuel oil through Syria, rerouting exports away from the Strait of Hormuz and rapidly turning Syria into a major Middle Eastern export hub, Report informs, citing Bloomberg.
According to the agency, Syria has gone from exporting none of the fuel to accounting for more than a quarter of Middle Eastern volumes within months. Supplies are transported by road to Syria’s Mediterranean ports, a journey that takes about four days.
The shift comes as countries in the Persian Gulf seek ways to reduce their reliance on Hormuz, through which about a fifth of the world’s oil supply normally passes. Regional tensions have disrupted fuel cargo movements and increased the importance of alternative export routes.
Bloomberg noted that the rise in fuel flows through Syria also reflects efforts to reintegrate the country into the global economy after the lifting of US sanctions. Syria is increasingly seen as a gateway for energy flows from Iraq, including possible crude oil pipeline projects.
Fuel oil, used in shipping and power generation, is Iraq’s main refined fuel export. With tensions in the Persian Gulf and limited alternatives to Hormuz, Iraq is looking for new routes to prevent refineries from running out of storage space and facing possible shutdowns.
In addition to Syria, Iraq is also sending fuel oil by truck through Jordan, while traders say small volumes of crude oil are being transported in the same way.
According to Vortexa data cited by Bloomberg, Iraqi fuel oil helped Syria export 720,000 tons in June, making it the largest shipper of the product in the Middle East with 28% of regional volumes.
Iraq’s Oil Ministry estimated that 1 million tons of fuel oil exports were trucked to Syria and Jordan in June, up from about 500,000 tons in May.