The Saudi Ministry of Energy denied the validity of the reports that spoke about the Kingdom’s purchase of 25 oil tankers, stressing in a statement carried by the Saudi News Agency (SPA) that this information is completely false, and stressing at the same time that it reserves its full right to make commercial and investment decisions that suit its needs and interests.
The Ministry explained that the significant increase in oil transport costs is due to other objective factors, most notably the ongoing military escalation in the region, the announced Iranian attacks on ships, as well as the disturbances witnessed in shipping traffic in the Strait of Hormuz. She indicated that these events resulted in a doubling of shipping risks and higher insurance costs, in addition to a decline in the number of tankers wishing to operate in the region, which pushed shipping costs to exceptional levels.
The Ministry stressed that linking the high costs of transporting Iraqi oil to the Kingdom is far from the truth and does not reflect the actual reasons behind this increase. These clarifications come in light of the increasing importance of tanker deals amid the turmoil witnessed in shipping traffic related to the war with Iran.
