Iraq’s State Oil Marketing Organisation (SOMO) has raised the official selling prices for its Basra Light and Kirkuk crude grades for October loading to the U.S. and Europe.
In common with some other countries, Iraq’s oil is priced relative to regional benchmark prices:
* For shipments to US, contracts are priced are relative to the Argus Sour Crude Index (ASCI);
* Shipments to Europe are priced relative the North Sea Spot BFOE; and
* Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.
October prices are as follows:
- Kirkuk crude to Europe increased the most, rising by $1.95 a barrel, and will sell at a premium of 15 cents a barrel to the North Sea (Dated Brent) benchmark;
- Basra Light to Europe will cost $1.50 a barrel more in October than in September and will sell at a narrower discount of $1.45 a barrel to Dated Brent;
- U.S. buyers will see a fifth consecutive price increase for the grade, with the discount to the ASCI narrowing to $1.15, an increase of 15 cents;
- Kirkuk oil for U.S. buyers will climb 10 cents a barrel to a 35 cents premium above the ASCI benchmark;
- The discount for Basra Light to Asia narrowed by 20 cents to $1.35 a barrel below the Dubai-Oman benchmark.
(Sources: Bloomberg, Reuters)