Iraq's SOMO cuts April crude prices for Asia, Europe as OPEC+ supply rises
Shafaq News/ Iraq's State Oil Marketing Organization (SOMO) has lowered its official selling prices (OSP) for April crude oil shipments to Asia and Europe as OPEC+ prepares to ease supply restrictions, a source told Shafaq News on Monday.
Iraq is part of an eight-nation OPEC+ group withholding 2.2 million barrels per day (bpd) from the market. The coalition has confirmed it will gradually restore these barrels starting in April, following previous delays due to market conditions. Under the plan, Iraq's production quota will rise by 12,000 bpd next month, while Baghdad has pledged to comply with OPEC+ output targets and offset previous overproduction in 2024.
For Asian buyers, SOMO cut Basrah Medium and Basrah Heavy crude prices by 50 cents per barrel from March, based on Platts' Oman/Dubai crude assessments. Basrah Medium's April OSP was set at a premium of $2.15 per barrel over Oman/Dubai, while Basrah Heavy was priced at a discount of 90 cents per barrel.
For European buyers, Basrah Medium's April price was set at a $1.50 per barrel discount to Brent, a 25-cent decrease from March, while Basrah Heavy's discount widened to $4.15 per barrel against Brent, compared to $4.05 the previous month.
For American buyers, SOMO kept Basrah Medium and Basrah Heavy crude prices unchanged. However, Kirkuk crude's OSP increased, with April shipments priced at a $1.50 per barrel premium to the Argus Sour Crude Index, up 30 cents from March. Kirkuk crude's price for European buyers remained at a $1 per barrel premium to Brent.
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