I just saw something interesting about how oil logistics are evolving in the Middle East. It turns out Iraq has found a pretty creative alternative to bypass the problems it faces with its traditional exports.

What’s happening is that Iraq’s first oil shipment recently started being shipped through Syria. According to Golden Ten Data on April 16, the Syrian oil company announced that loading operations began at the Banias refinery, located at the Syrian port. Basically, the oil coming from Iraq first arrives by truck at that refinery, is processed, and then transferred to the port terminal for maritime export.

The context is important here. The closure of the Strait of Hormuz has left Iraq in a tricky position to export its oil via conventional routes, so this land route through Syrian territory has become a quite viable alternative solution. Ahmed Kubaji, deputy director of the Syrian oil company, explained at a conference that under the bilateral agreement, Iraq transports its crude to Banias, where Syria can keep what it needs for its power plants, and the rest is exported.

The first tanker will carry approximately 500,000 tons, and the loading operation will take at least three days. It’s interesting to see how countries are adapting to geopolitical limitations. This type of agreement between Iraq and its neighbors will probably remain relevant as long as restrictions on traditional maritime routes persist. Definitely something to watch if we follow energy market movements in the region.