Iraq Cuts Crude Prices for February Delivery

Iraq, the third-largest producer in OPEC, cut the official price formulas for all its crude grades and destinations for February, according to price lists published by the State Oil Marketing Organisation (SOMO).

Basrah Light and Kirkuk, the two grades sold by the Middle Eastern state, will sell for 20 cents a barrel less in February than in January, according to a report from Bloomberg.

But Dow Jones Newswires, citing a telephone conversation with SOMO chief Falah Alamri, reported different figures on Friday:

  • Basra Light crude for delivery to Europe in February being cut by $1.50 a barrel to $3.40 a barrel below Dated Brent; and
  • Prices to US customers being set $1.35 a barrel below the Argus Sour Crude Index, or ASCI, compared with $1.15 a barrel below ASCI in the previous month.

As usual, there is no confirmation of these prices on the SOMO website.

(Sources: Bloomberg, Dow Jones)

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