Iraq Offers Significant Discounts on Basra Oil Sales to Attract Contracted Buyers

Iraq's national oil marketing company, SOMO, has reportedly offered significant discounts on selling prices to contracted buyers, aiming to attract them to import Basra crude oil from its Gulf terminal for July shipments. The discounts for Basra Medium crude ranged between $14 and $16 per barrel, while those for Basra Heavy crude were between $16.80 and $18.80 per barrel, depending on the loading period. Sources indicated that larger discounts are applied to shipments loaded between July 1st and 5th, diminishing progressively for shipments between July 6th and 10th, and further reducing for those loaded from July 11th to 31st. SOMO requested buyers to submit their desired quantity requests within one day of receiving the notification. Trade sources noted that while these substantial discounts might entice buyers, concerns persist regarding the feasibility of navigating the Strait of Hormuz.