Saudi Arabia’s Ministry of Energy on Tuesday rejected claims that the Kingdom had purchased 25 oil tankers and that the move had contributed to higher transportation costs for Iraqi crude, saying the sharp increase in shipping rates was driven by security and maritime developments in the region.
The ministry confirmed that Saudi Arabia had not purchased the tankers in question and described the reports as inaccurate, stressing that the Kingdom makes its commercial and investment decisions according to its own needs and interests.
It said the rise in crude transportation costs was driven by several factors, including escalating military tensions in the region, attacks targeting vessels, disruptions to maritime traffic through the Strait of Hormuz, increased shipping risks and insurance costs, as well as a decline in the number of tankers willing to operate in the area.
The ministry noted that these developments had pushed shipping costs to unusually high levels, stressing that attributing the increase in Iraqi oil transportation expenses to Saudi Arabia does not correspond with the actual factors driving the rise in freight rates.
