Syria has yet to offer lifters extra barrels of oil following an agreement with Baghdad to import 200,000 barrels per day (bpd) of
Iraqi crude, traders said yesterday.
Under the deal, Syria would export the same amount of Syrian Light and Heavy
grades to international markets.
"We have been asking for extra Syrian Light for the past few weeks, but we have
yet to receive any," said one lifter. "I think it's too early to see anything on this front."
An Iraqi source said yesterday that Baghdad was ready to start pumping oil
through a pipeline with Syria that has been closed since 1982, but was awaiting
the Syrian go-ahead.
Iraqi Oil Minister Amir Mohammed Rasheed said on Wednesday it would be ready
for oil exports through the pipeline in two to three days.
Oil sources in Syria said they were not aware of an imminent start in the
pumping of Iraqi Basrah Light or of extra Syrian barrels being made available to the international markets.
"How can they (Syria) commit to something (offering more barrels) which is not
known for sure. They don't know yet what will happen," said one source.
"It will be a governmental decision."
Another source said, "Syria had good relations with Iraq many years ago and
they want to see those relations become good again."
This source added however that he did not believe Syria wanted to be on a
collision course with the United Nations or to flout UN sanctions imposed on
Iraq.
Iraq has said the agreement would fall outside its UN oil-for-food oil sales.
It trades oil to its neighbours Turkey and Jordan outside the UN brokered deal.
Diplomats at the United Nations have said Iraq needed to seek permission from
the world body for the pipeline exports.
"The United Nations won't stand for this," said an industry source. "If Iraq
gets away with exporting oil to Syria outside the oil-for-food deal then sanctions are all but dead and buried."
If Iraq and Syria ignored UN misgivings and the deal went through, market
sources said it might spell good news for Mediterranean refiners seeking extra
sour crude oil supplies.
It would, however, leave lifters of Iraq's Basrah Light short of supply.
The Iraq-Syria oil swap would likely see Syrian marketer Sytrol double term
contract sales of its Syrian Light from a current 200,000 bpd.
The Syrian Light terminal at Banias can only handle ships of maximum 600,000
barrels.
"If you're looking to load a big ship, that terminal is a nightmare," said one
market source.