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 February.

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 $5.95 a barrel to Dated Brent, compared to a discount of $4.35 previously.
• Kirkuk Crude to Europe will sell at a discount of $4.80 a barrel to Dated Brent, compared to a discount of $2.90 previously.

And to the US:

• Basrah Light will sell at a discount of $1.05 to the U.S. benchmark, down 40 cents the previous month.
• Kirkuk will sell at a premium of $1.75, unchanged from last month.

To Asia:

• Basrah Light to Asia will sell at a discount of $3.70 to the benchmark, up from a discount of $4.00 last month.

(Source: Bloomberg)

(Oil image via Shutterstock)