Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices for its Basra Light and Kirkuk crude grades for March.
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.
The new prices to Europe are as follows:
- Kirkuk crude to Europe will sell at a discount of $3.25 a barrel relative to the North Sea (Dated Brent) benchmark, a drop of $1.20;
- Basra Light to Europe will sell at a discount of $4.60 a barrel to Dated Brent, also a drop of $1.20.
And to the US:
- Basrah Light will sell at a $1.35 discount to the U.S. benchmark for a second month;
- Kirkuk will sell at a premium of 40 cents above the benchmark, an increase of 10 cents.
- Basrah Light to Asia will sell at a discount of 35 cents a barrel below the benchmark, a drop of 25 cents.