Iraq Reviews Oil Prices

By John Lee.

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

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 to the North Sea Spot BFOE (Brent benchmark); 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:

  • Basra Light to Europe will sell at a discount of $4.45 a barrel to Dated Brent, compared to a discount of $5.40 previously.

And to the US:

  • Basrah Light will sell at a discount of 10 cents to the U.S. benchmark, down 50 cents on the previous month.
  • Kirkuk will sell at a premium of $1.75, down from a premium of $2.00 last month.

To Asia:

  • Basrah Light to Asia will sell at a discount of $2.50 to the benchmark, up from a discount of $3.15 last month.

(Sources: Bloomberg, WSJ)

(Oil image via Shutterstock)

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