New Iraqi Oil Prices for August

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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 August.
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 the North Sea Spot BFOE; 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:

  • Kirkuk crude to Europe will sell at a discount of $1.15 a barrel relative to the North Sea (Dated Brent) benchmark, compared to a discount of $2.55 previously;
  • Basra Light to Europe will sell at a discount of $3.20 a barrel to Dated Brent, compared to a discount of $4.40 previously.

And to the US:

  • Basrah Light will sell at a $1.50 discount to the U.S. benchmark, up 15 cents from last month.
  • Kirkuk will sell at a premium of 60 cents, up from a premium of 45 cents last month.

To Asia:

  • Basrah Light to Asia will sell at a premium of $0.95 above the benchmark, compared to a premium of $0.30 last month.

(Sources: Wall Street Journal)