Iraq Hikes Basra Oil Prices for July

Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices on Sunday for its Basra Light and Kirkuk crude grades for July.

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 $3.55 a barrel relative to the North Sea (Dated Brent) benchmark, up $1.20 from March;
  • Basra Light to Europe will sell at a discount of $5.25 a barrel to Dated Brent, an increase of $1.80.

And to the US:

  • Basrah Light will sell at a $2.00 discount to the U.S. benchmark, up 10 cents from June;
  • Kirkuk will sell at the benchmark, an drop of 25 cents.

To Asia:

  • Basrah Light to Asia will sell at the benchmark, an increase of 5 cents.

(Sources: Bloomberg)

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