Saudi Arabia on Tuesday rejected an Iraqi claim that it had purchased 25 oil tankers, calling the information false.
Basim, the oil minister of Iraq during a parliamentary session revealed that Saudi Arabia had purchased 25 oil tankers valued at an estimated $4.5 billion. The cost of transportation has increased from $26 to $37 a barrel, according to Mohammed.
He said that these acquisitions were the reason for the sharp increase in the price of carrying Iraqi oil. It said that the region’s shipping prices had reached “exceptional levels” as a result of such circumstances. The two biggest oil producers in the Organization of Petroleum Organization are Saudi Arabia and Iraq exporting nations. It is uncommon for their energy ministers to publicly disagree. Saudi Arabia’s energy ministry stated in a statement that it had not bought the tankers and cited a number of reasons for the increase in oil transportation costs, such as the armed confrontation in the region and the difficulty of navigating the Strait of Hormuz.
On Monday, an Iraqi media organization posted his comments on Facebook.