Falling Iraqi oil exports have eased a huge traffic jam of tankers waiting to load crude at the Iraqi port of Basra, with queuing times falling by about a third this month, shipping data showed.
The easing congestion comes as crude exports from Iraq's southern ports are set to drop to 3.085 million barrels per day (bpd) in May, the lowest this year. Iraq typically cuts Basra exports whenever there is a backlog of ships waiting to load.
Delays to load Basra Heavy crude have fallen to an average of 11-12 days, ship agent data showed on Sunday, compared with an average of 18-20 days according to ship agent and tracking data on April 6th.
Tankers were waiting five to six days to load Basra light crude on Sunday, ship agent data showed compared with seven to eight days on April 6th.
“The Basra loading programme for May has very little heavy crude cargoes. The intention is to reduce the queues,” said a Singapore-based supertanker broker, declining to be identified as he was not authorised to speak to the media.
“The heavy cargoes will return from the middle of the month as the delays will have eased.”
Around 19 very large crude carriers (VLCC) and suezmax tankers are currently waiting to load Basra light and heavy crude, according to ship agent and ship tracking data. That is down from about 30 supertankers on April 6th.
Each day’s delay for a VLCC costs about $50,000 in extra hire costs, chartering data showed.
The Basra Oil Terminal has seven berths to load light and heavy crude but only four are being used simultaneously to load crude, ship agent data showed. The three others are closed for maintenance, ship broking sources said.
Basra Heavy exports will fall to a nine-month low of 645,000 bpd in May and Basra Light’s volume will be at 2.44 million bpd, the lowest monthly volume in 2016, trade sources said two weeks ago.
The delays at Basra, coupled with hold-ups in unloading crude at several Chinese ports including Qingdao, helped support tanker charter rates, although freight rates have fallen as the delays eased.
“The delays in Chinese ports prevail, though they are less than before. Basra delays remain, but they are also less than before,” said a European supertanker broker.
