By John Lee.
According to a report from Reuters, the new Basra Heavy crude oil grade has been trading at a widening discount.
Malaysia’s Petronas reportedly sold 2 million barrels for June loading to Indian refiner Essar Oil at a discount of more than $1 a barrel to its official selling price.
bigger than expected export volume of the new grade, added to caution among Asian refiners, has restricted demand for the oil in Asia.
(Oil prices image via Shutterstock)