en.Wedoany.com Reported - TotalEnergies is planning to offer millions of barrels of Iraqi Basra Medium and Basra Heavy crude oil to Asian buyers, with rapid delivery scheduled for this month and next, according to traders who spoke to Bloomberg.

Iraq, one of the Persian Gulf oil producers most affected by the situation in the Strait of Hormuz, has recently been offering crude at significant discounts on the spot market, with transactions conducted solely on a cargo basis, meaning buyers must secure empty tankers to transit the Strait of Hormuz into the Gulf.

According to Bloomberg sources, TotalEnergies, one of the top commodity traders among oil majors, is offering an undisclosed volume of Iraqi crude to buyers in China, South Korea, and Taiwan. The supermajor will load the crude from Basra and deliver it through the Strait of Hormuz in the coming weeks.

Trading sources told Bloomberg that TotalEnergies has been seeking to charter Very Large Crude Carriers (VLCCs) capable of loading up to 2 million barrels of crude to facilitate the deliveries.

TotalEnergies' offer indicates that the supermajor is optimistic about continued improvements in shipping conditions in the Strait of Hormuz in the weeks and months ahead.

Iraq, OPEC's second-largest oil producer after Saudi Arabia, has been hit hardest by the Middle East crisis. Its heavily oil-dependent economy faces collapse as oil revenues have dried up due to the blockade of the Strait of Hormuz.

The reopening of the Strait of Hormuz and the opportunity to ship crude out of the Gulf via TotalEnergies are expected to revive Iraq's oil sales and revenues. Over the past few months, these revenues have been severely damaged by restricted export routes, leaving only one pipeline transporting crude from Iraq's northern oil fields through Kurdistan to the Turkish Mediterranean port of Ceyhan.

Market expectations of a surge in spot supply as Iraq and other Gulf oil producers rush to ship crude through the Strait of Hormuz have pressured oil prices and prompted investment banks to lower their price forecasts for the remainder of this year and into 2027. The market balance is expected to once again show a supply surplus.