Iraq to Export Crude, Naphtha through Syria after Hormuz Shock

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
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Iraq to Export Crude, Naphtha through Syria after Hormuz Shock

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo

Iraq is preparing to export crude oil and naphtha through ports in Syria, Syrian and Iraqi energy officials and refinery sources said after the Iran war cut off its main Gulf shipping routes.

The move would broaden an arrangement that has seen Iraq export fuel oil through the Mediterranean port of Baniyas after the effective closure of the Strait of Hormuz, which sharply curtailed Gulf export routes for OPEC's second-largest producer.

Two Iraqi oil officials said plans to diversify crude and fuel export routes, including through Syria, would continue even after the Iran war ends and shipping through the Strait of Hormuz returns to normal, as part of a government-approved strategy to reduce Iraq's reliance on a single export corridor.

"The Iraqi government and the oil ministry attach the highest importance to diversifying crude export routes, particularly through Syrian territory," Iraqi oil ministry spokesperson Saleem al-Rikabi told Reuters.

Rikabi said the oil ministry, through state oil marketer SOMO, was continuing "discussions and cooperation" with Syria to expand exports through its western neighbor.

Iraq ‌normally exports a ‌total of around 3.6 million barrels of oil per day and before the Iran war around ‌3.4 ⁠million bpd flowed through ⁠its southern Basra terminals.

Mohammed Al-Ahdab, head of the media office at Syrian Petroleum Company (SPC), said the operation and offloading were continuing, despite the anticipated opening of the strait.

Before the disruption caused by the Iran war, Iraq mainly exported its fuel oil from the Gulf port of Khor al-Zubair, but the conflict has forced it to seek alternative routes after the strait was closed and storage facilities began filling up.

The initial work-around, which began operating in April, saw millions of barrels of Iraqi fuel oil trucked across Syria to Baniyas and re-exported from there.

Syria plans to open two extra unloading areas and other facilities in Baniyas within a week to handle Iraqi crude oil and naphtha, a Syrian energy ministry official said. ⁠Ahdab said Baniyas can now unload an average of 900 tanker-trucks per day.

Crude could begin crossing ‌from Iraq to Syria at around 50,000 barrels per day once the loading installations ‌are ready, the two Iraqi oil ministry officials said. There were no immediate details on planned levels of naphtha exports.

Tanker-truck exports are expected to begin ‌in early July, Syrian and Iraqi officials said, while SOMO is set to open offices in Baniyas.

FEE INCOME FOR SYRIA

In April, SOMO ‌awarded contracts to supply about 650,000 metric tons of fuel oil per month from April to June to be trucked overland via Syria. Iraq exported a record 18 million tons of fuel oil in 2024, equivalent to roughly 1.5 million tons per month, with the best available data for 2025 showing they were near the levels reached in late 2024.

SPC Deputy CEO Ahmad Kobbaji told Reuters in May that Syria had limited infrastructure but was increasing its ‌unloading and re-export capacity for Iraqi fuel products.

Under President Ahmed al-Sharaa, Syria is seeking to reintegrate into the regional and global economy after decades of Assad family rule and nearly 14 years ⁠of war devastated its economy and ⁠left it politically and financially isolated.

Syria is earning transit fees from the fuel oil shipments, paid through buyers and intermediaries rather than directly by SOMO, the Iraqi oil ministry officials said. Reuters was unable to determine what Syria was earning or how fees were collected.

Iraqi fuel oil shipped via Syria had reached destinations across Africa and Europe, with the latest tanker arriving in Alexandria, Egypt, on June 9, LSEG shipping data showed.

IRAQ KEEN TO EXPORT, DESPITE RISKS

The route to Baniyas is fraught with challenges, with highways damaged by years of war, and Reuters reporters saw lines of Iraqi tankers stretching for more than 30 km (19 miles) along the road to the port.

In June, two Iraqi fuel tankers collided near Homs, spilling thousands of liters of fuel, while protesters in northeast Syria blocked Iraqi tankers to protest against rising fuel prices and deteriorating living conditions.

A source at the Baniyas facility with direct knowledge of the transfers said the Iraqi fuel oil is not processed at the refinery. Instead, tanker trucks unload at a marine platform connected to storage tanks north of the refinery, from where the fuel is pumped directly to waiting export tankers.

Meanwhile, Syria is working on reviving war-damaged pipelines to replace the tanker route, SPC's Kobbaji said in May. The Iraq-Syria oil pipeline can pump up to 300,000 barrels per day, the Syrian energy ministry official said.



Trump Floats ‘Concept’ of US-Canada Deal That Includes Pipeline Talking to Carney

President Donald Trump greets Canada's Prime Minister Mark Carney during a summit to support ending the more than two-year Israel-Hamas war in Gaza after a breakthrough ceasefire deal, Oct. 13, 2025, in Sharm El Sheikh, Egypt. (AP)
President Donald Trump greets Canada's Prime Minister Mark Carney during a summit to support ending the more than two-year Israel-Hamas war in Gaza after a breakthrough ceasefire deal, Oct. 13, 2025, in Sharm El Sheikh, Egypt. (AP)
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Trump Floats ‘Concept’ of US-Canada Deal That Includes Pipeline Talking to Carney

President Donald Trump greets Canada's Prime Minister Mark Carney during a summit to support ending the more than two-year Israel-Hamas war in Gaza after a breakthrough ceasefire deal, Oct. 13, 2025, in Sharm El Sheikh, Egypt. (AP)
President Donald Trump greets Canada's Prime Minister Mark Carney during a summit to support ending the more than two-year Israel-Hamas war in Gaza after a breakthrough ceasefire deal, Oct. 13, 2025, in Sharm El Sheikh, Egypt. (AP)

US President Donald Trump said on Sunday that his administration has the "concept" of a new trade deal with Canada while Prime Minister Mark Carney said the two leaders had a good conversation on the future of trade between their countries.

"I spoke to him again yesterday, and we have the concept of a deal that's going to be great for our farmers, great for our country, and we'll be fine for that," Trump told reporters in Dubuque, Iowa.

Carney earlier on Sunday posted on social media that their exchange "builds on recent constructive ‌discussions on the outlines ‌of a mutually beneficial trade deal" that would create jobs, improve ‌affordability, ⁠and fully respect ⁠Canada’s languages, culture, and sovereignty.

"Our teams will now be working in the coming weeks to deliver that outcome," Carney wrote on X.

Canada and the United States have slapped billions of dollars in tariffs on each other in recent months. The imposition of tariffs on Canada has emerged as an issue in some northern US border states like Michigan and Maine before US midterm elections on Tuesday.

Trump said last week that a trade deal with Canada was coming soon, but Ottawa had previously reported limited ⁠progress in trade talks, despite efforts to ease tariffs on steel ‌and autos.

Trump said the scope of an agreement would include ‌the Keystone XL pipeline project that he supports, though it was not immediately clear how the project would ‌be revived. Former President Joe Biden in 2021 revoked a key permit for the project, which ‌was a private sector initiative.

"They're going to build the Keystone Pipeline," Trump said on Sunday. "They're going to pay for it. ... We're going to give them the route, and it's largely been determined."

A spokesperson for Dominic LeBlanc, Canada's minister responsible for trade with the US, had no further comment on Sunday evening beyond Carney's ‌remarks.

Trump said in August that the pipeline "may be awoken from the grave." The proposed pipeline would have carried 830,000 barrels per day of ⁠oil from the ⁠oil sands of northern Alberta to the major US storage hub at Cushing, Oklahoma, and then on to Gulf Coast refineries.

Canada, the world's fourth-largest oil exporter, sends more than 90% of its crude oil production to the US.

The company behind Keystone XL, Canada's TC Energy, lost billions when the pipeline was canceled. It later spun off its crude pipelines business into a new entity, South Bow, which has proposed a new pipeline project called Prairie Connector, in partnership with US company Bridger Pipeline.

The 550,000-barrel-per-day project would run from Alberta to Wyoming and would use some of the Keystone XL pipe that had been installed on the Canadian side of the border before that project was canceled. South Bow has said it will decide whether or not to go ahead with Prairie Connector in 2027.

South Bow was not immediately available for comment. A spokesperson for Canadian Energy Minister Tim Hodgson declined comment.


London Copper Climbs as Tight Supply, Falling Oil Offer Support

TOPSHOT - Artisanal miners pass bags of copper ore to one another in a human chain inside the 110-meter-deep mine shaft in Kolwezi on September 27, 2026. (Photo by MARIE RUWET / AFP)
TOPSHOT - Artisanal miners pass bags of copper ore to one another in a human chain inside the 110-meter-deep mine shaft in Kolwezi on September 27, 2026. (Photo by MARIE RUWET / AFP)
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London Copper Climbs as Tight Supply, Falling Oil Offer Support

TOPSHOT - Artisanal miners pass bags of copper ore to one another in a human chain inside the 110-meter-deep mine shaft in Kolwezi on September 27, 2026. (Photo by MARIE RUWET / AFP)
TOPSHOT - Artisanal miners pass bags of copper ore to one another in a human chain inside the 110-meter-deep mine shaft in Kolwezi on September 27, 2026. (Photo by MARIE RUWET / AFP)

London copper recouped some of the previous week's losses on Monday, supported by supply concerns and lower oil prices, as talks to end the US-Israeli war on Iran continued.

Benchmark three-month copper on the London Metal Exchange was up 0.73% at $14,258.5 a metric ton by 0700 GMT. The most-traded copper contract on the Shanghai Futures Exchange edged 0.27% lower to 108,720 yuan ($16,354.53) a ton, reported Reuters.

An inflow of stocks into US warehouses ‌ahead of ‌a potential tariff on imports of refined ‌copper ⁠has created regional bottlenecks ⁠and generated supply fears.

Chile's copper commission Cochilco on Friday sharply lowered its 2026 output forecast from the world's largest copper producer.

In China, the world's biggest consumer, tight supply had the closely watched Yangshan premium <SMM-CUYP-CN> end last week at $200 a ton, near its highest level in ⁠over a decade.

The premium shows good demand ‌for imported copper into China, ‌with inventories in SHFE-monitored warehouses <CU-STX-SGH> down more than 75% in ‌the last six months.

"Underlying fundamentals remain supportive, with ‌signs of tightness still evident across the physical market," analysts from ING said in a note.

Oil prices fell as Iranian and Qatari officials, who are acting as mediators, held a third straight ‌day of talks to end the Iran war.

Lower oil prices could ease the pressure ⁠on economic activity ⁠and on demand for growth-sensitive industrial metals such as copper. Concerns around high oil prices helped make October the first month since June that copper prices fell.

The US dollar index fell ahead of the US midterms, supporting greenback-denominated commodities by making them cheaper for buyers using other currencies.

Among LME metals, aluminium dipped 0.15%, zinc ticked 0.14% higher, lead fell 0.21%, nickel rose 1.5% and tin gained 0.68%.

On the SHFE, aluminium lost 0.93%, zinc fell 1.01%, lead dropped 0.59%, nickel lost 0.5% and tin lost 1.4%.


Turkish Manufacturing Contracts in October at Fastest Pace Since June, PMI Shows

 People walk past displayed items in a clothes shop at Eminonu commercial area, in Istanbul, Türkiye, Thursday, March 26, 2026. (AP)
People walk past displayed items in a clothes shop at Eminonu commercial area, in Istanbul, Türkiye, Thursday, March 26, 2026. (AP)
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Turkish Manufacturing Contracts in October at Fastest Pace Since June, PMI Shows

 People walk past displayed items in a clothes shop at Eminonu commercial area, in Istanbul, Türkiye, Thursday, March 26, 2026. (AP)
People walk past displayed items in a clothes shop at Eminonu commercial area, in Istanbul, Türkiye, Thursday, March 26, 2026. (AP)

Türkiye's manufacturing sector ‌contracted in October at the fastest pace since June as sharper declines in output and new orders weighed on activity, a business survey showed on Monday.

The headline Istanbul Chamber of Industry Türkiye Manufacturing PMI, compiled by S&P Global, fell to 47.3 in October from 47.9 in September.

The 50 mark separates growth ‌from contraction.

"The ‌economic environment facing Turkish ‌manufacturers ⁠is such that they ⁠continued to find it difficult to generate growth as the final quarter of the year began," said Andrew Harker, economics director at S&P Global Market Intelligence.

Output was cut for a fifth ⁠straight month and at the fastest ‌pace in four ‌months, while new orders fell for a ‌40th consecutive month. The decline in new ‌business was the sharpest since July, with export orders also continuing to soften.

Manufacturers reduced headcount again, but the pace of job shedding ‌eased for a second month and was the weakest since ⁠June.

Input costs and output prices both rose sharply, though their inflation rates eased from September. S&P Global said 29% of respondents reported higher input prices, citing oil, raw materials and exchange rate weakness.

Manufacturers still expected output to rise over the coming year, but confidence slipped to a three-month low. Suppliers' delivery times lengthened again, extending a run of monthly deterioration to a full year.