Iraq's crude oil exports to Jordan have been halted due to technical issues related to the characteristics of the crude oil and its incompatibility with Jordan's refineries. Salim Al-Rakabi, spokesperson for the Iraqi Ministry of Oil, stated that currently, quantities of Kirkuk light crude oil that were previously sent to Jordan's refineries are not available.
Technical Issues and Incompatibility of Crude Oil
Jordan's refineries previously received Kirkuk light crude oil, which was compatible with the nature and operational conditions of these refineries. However, due to the reduced quantities of Kirkuk light crude oil, exports to this country have been halted. This issue clearly indicates the ongoing challenges in the crude oil supply chain for Jordan and its dependence on Iraqi oil resources.
Substitution Proposal and Jordan's Response
Furthermore, Al-Rakabi noted that Iraq has proposed to the Jordanian side to receive Basra medium crude oil as a substitute for Kirkuk light crude oil. However, the Jordanian side has stated that the refineries in this country are unable to process Basra medium crude oil. This highlights the technological and infrastructural limitations of Jordan's refineries, which need to seek new solutions to meet their oil needs.
Consequences of Export Halt
The halt of crude oil exports to Jordan could have significant economic and political repercussions for both countries. On one hand, Jordan may face fuel shortages and rising domestic prices, while on the other hand, Iraq may encounter reduced oil revenues due to the lack of exports to a key market. These developments could have broader impacts on the relations between the two countries as well as on regional oil markets.
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