Iraq’s State Oil Marketing Organization (SOMO) offered larger discounts to term buyers for Basrah crude scheduled for October loading, reaching $34.50 per barrel for Basrah Medium and $37 for Basrah Heavy, Reuters reported on Wednesday, citing traders and a document it reviewed.
According to the document, they apply on a free-on-board (FOB) basis from the Basrah Oil Terminal or Iraq’s single-point moorings and associated facilities.
Calculated against benchmark prices in the respective destination markets, the discounts widened from less than $30 per barrel for August- and September-loading crude, with Reuters citing higher shipping costs and continued risks associated with lifting cargoes inside the Strait of Hormuz.
Discounted Basrah crude has reportedly attracted buyers including Vitol and the UAE’s Abu Dhabi National Oil Company (ADNOC) in recent months, helping Iraq increase its oil exports.
