Oil tanker seized by Iraq freed, sources say

DUBAI, Aug 12 (Reuters) - A Liberian-flagged oil tanker that had been detained by Iraq's navy has been released and is en route to the United Arab Emirates, two sources familiar with the matter said on Tuesday.

The vessel, which had been identified by authorities and shipping sources as the Liliana tanker, was carrying 93,000 metric tons of fuel oil when it was intercepted last week, 26 nautical miles from Iraq's coast near Basra's oil terminal.

The ship was released after a court order, according to one of the sources and a court order, seen by Reuters, which stated it had committed no breaches.

Smuggling is common in Gulf waters, where heavily subsidised fuel from some countries is sold on the black market to buyers across the region, though it has been relatively rare until recently for Iraqi authorities to seize ships.

The vessel is owned by Dubai-based Babylon Navigation DMCC.