Iraq reduces costs of oil exports to Europe and Asia
Baghdad (IraqiNews.com) – A source revealed on Monday that the State Organization for Marketing of Oil (SOMO) reduced the official selling price (OSP) for April crude oil exports to Asia and Europe while OPEC+ is ready to relax production limitations.
According to Quantum Commodity Intelligence, OSPs for the Basrah Medium and Heavy grades exported for the Asian market were both down 50 cents per barrel.
The Basrah Heavy was reduced to a 90-cent-per-barrel discount for Asian purchasers, while the Basrah Medium OSP was pushed down to $2.15 per barrel.
Although not as sharply, the rates for the two major grades to Europe also decreased month over month.
The price difference between April-loading Basrah Medium to Europe and the Dated Brent benchmark is $1.50 per barrel, which is falling 25 cents per barrel per month. In contrast, the price of Basrah Heavy Crude for April was $4.15 per barrel less than Dated Brent, while the price of barrels loaded in March was $4.05 less.
Iraq keeps over two million barrels per day from the market as a member of the OPEC+ group.
After earlier delays brought on by global market dynamics, the OPEC+ group has announced that it will progressively reinstate these barrels in April.
Iraq has promised to adhere to OPEC+ output levels and make up for past excess production in 2024. The plan calls for an increase of 12,000 barrels per day in Iraq's output limit next month.
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