This is because the semi-autonomous Iraqi region of Kurdistan has increased independent sales while cutting what it allocates to Iraq's state oil marketing organisation (SOMO), a shipping agent told Reuters.

The two sides have been locked in a dispute over export rights and budget payments.

Companies including Eni, Socar, Repsol and BP have cancelled shipments on tankers.

A trade source said SOMO had also contacted cargo lifters to request that cargoes be cancelled.

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