Oil fell as rising exports from Iraq underlined the global oversupply situation over an increase from Iraq’s southern ports of an average of almost 3.5mb/d in April, an official from the state-run South Oil Company said, according to Trade Arabia. The figure was above the 3.3mb/d average for March, and 3.22mb/d for February, compared to 2.5mb/d in 2010.
Meanwhile, Basrah’s Port was reported to be at capacity as there were almost 30 large oil tankers waiting to moor costing operators $75,000 per day in fees over the previous weeks, wrote Rebuilding Iraq website. The average time to unload crude in Basrah has increased from 5-10 days to 18-19 days. Loading delays are largely to blame as the city’s facilities have not been able to accommodate Iraq’s soaring oil production.
Currently, there are 43m barrels being held on 27 VLCC’s (very large crude carrier) and suezmax tankers waiting at Basra’s port, double the normal capacity. However, numbers are unlikely to ease as this congestion could continue throughout April and May.