TotalEnergies Offers Millions of Iraqi Barrels to Asian Buyers
The French major is marketing Basrah Medium and Heavy crude for prompt July-August delivery, hiring supertankers to move volumes across Asia.
TotalEnergies SE is offering millions of barrels of Iraq's Basrah Medium and Basrah Heavy crudes for prompt delivery to Asia this month and next, traders who received the offers told Bloomberg on Friday (2026-07-03). The French major is targeting buyers in South Korea, Taiwan, and China, and has been seeking very large crude carriers capable of transporting two million barrels each to move the cargoes.3,2
The scale of the offer is notable in a market already well-supplied. Rigzone reported on Friday (2026-07-03) that the TotalEnergies volumes add to a supply picture described by trading sources as brimming, a signal that the Hormuz-disruption premium that briefly tightened Asian crude availability earlier this year has substantially unwound. ICE Brent crude front-month settled at $72.12 as of Friday's (2026-07-04) data, well below the $80 mark prices touched when the conflict initially disrupted Gulf flows.2
Iraq is one of OPEC's largest producers, and Basrah crude grades flow primarily from the country's southern export terminal at Khor al-Amaya and Al Basra Oil Terminal on the Persian Gulf. Both Basrah Medium and Heavy carry higher sulfur content than North Sea benchmarks, making them particularly suited to South Korean and Chinese refineries equipped for processing heavier sour barrels.3
TotalEnergies' decision to market these volumes aggressively into Asia rather than holding them for spot sale in Europe reflects where refinery margins and demand incentives sit. Chinese buyers have remained the dominant takers of Middle Eastern crude throughout the Hormuz disruption, and South Korean refiners have been rebuilding run rates after drawing down strategic reserves during the worst of the supply squeeze.2,3
Asian energy demand earlier in the conflict period shifted partly toward coal as LNG spot prices surged and Middle Eastern crude routes tightened. Japan suspended a 50% capacity factor cap on older coal plants through March 2027, South Korea lifted an 80% utilization ceiling on its coal fleet, and Taiwan restarted coal units at the Mailiao plant — all emergency responses to LNG availability constraints.1 The return of Iraqi crude to Asian spot markets via a major trading entity like TotalEnergies is a different kind of signal: physical supply is now moving freely enough that sellers are competing for placement.
The VLCC market will be one indicator to watch. If TotalEnergies secures multiple supertanker bookings on these routes at competitive rates, it confirms that freight capacity has loosened alongside crude availability. Any tightening in VLCC day-rates into East Asia would suggest that the volume being marketed is genuinely competitive and drawing buyer interest.3,2
Iraq's position as an OPEC+ member adds another dimension. The country has historically overproduced against its quota; prompt cargo offers at below-benchmark netbacks would be consistent with that pattern, and Asian buyers with flexible refinery slates are typically willing to absorb the discounts in exchange for reliable, high-volume delivery. Whether South Korean and Chinese buyers commit to the volumes TotalEnergies is seeking to place in July and August will be visible in VLCC fixture data over the next two weeks.2