Iraq Finalises Gasoil Term Contract

By John Lee.

Vitol and Glencore have finalised term contracts to sell over 1.5 million tonnes of gasoil to Iraq's State Oil Marketing Organisation (SOMO), reports Reuters.

Vitol will supply four cargoes of 500 ppm sulphur gasoil, along with three cargoes from Glencore, through 2014 at a premium of $7.37 a barrel over Middle East quotes on a cost, insurance and freight (CIF) basis. The premium is lower than the $7.99 paid for 1.097 million tonnes in 2013.

The deliveries will be made into the Khor Al-Zubair Terminal.

(Source: Reuters)