By Simon Kent.
Traders in Europe have reported to Reuters that the Basra Light grade of crude is selling for $30 on the European market, as Iraq gains on Saudi Arabia as one of the main suppliers of oil to EU countries.
Last year, Basra split its exports into Basra Light and Basra Heavy grades and one of the results of this was a surge in output, as the movement of oil to tankers became more efficient.
The news comes as Iraq continues to struggle to pay International Oil Companies (IOCs) under the terms of contracts which stipulate that Iraq pays them a fixed per barrel fee to extract the oil. Since the fee is fixed, the price collapse has hit Iraq hard.
Furthermore, OPEC have announced that there are no plans to cut production, which could mean more bad news for oil companies as Iran plans to ramp up exports, adding to the glut.
In 2015 Iraq added half a million barrels per day to the global market, making the country the leading contributor to oil export growth for that year, according to International Energy Agency data.