Baghdad Denies Trader’s Claim That U.S.-Seized Oil Is From Iraq

An oil trader’s claim that a cargo of crude seized by the U.S. came from Iraq rather than Iran, as Washington asserts, is wrong, according to Baghdad.

SOMO, Baghdad’s state oil-marketing company, “categorically denies” that the 2 million barrels of crude -- worth roughly $130 million at today’s prices -- are “of Iraqi origin,” it said in a statement on its website.

Fujairah International Oil & Gas Corp. laid claim to the cargo that Washington seized as part of its efforts to sanction Iranian oil exports. FIOGC, controlled by the ruler of Fujairah, one of the UAE’s seven emirates, told a U.S. court last week that the crude came from Iraq and that it had documents from SOMO to prove that.

“In case of circulation of those shipping documents bearing the logo of SOMO for these shipments, they are to be considered as forged and incorrect documents,” SOMO wrote.

FIOGC didn’t immediately respond to a request for comment.

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