Iraqi SOMO Offers Discounts on Basra Crude Loading from Strait of Hormuz Region

A document reviewed by an international news agency indicates the Iraqi Oil Marketing Company (SOMO) is offering discounts on Basra crude for August loading to attract buyers for shipments from within the Strait of Hormuz. The document indicates SOMO invited buyers to specify contractual quantities of Basra Medium or Basra Heavy crude for Free On Board (FOB) delivery from the Basra oil terminal or Iraq's associated mooring facilities. SOMO offered discounts of $25 to $27 per barrel for Basra Medium crude, against reference indicator prices for destinations and based on loading location. Similar discounts of $27.80 to $29.80 per barrel were offered for Basra Heavy crude. SOMO was not immediately available for comment on the matter. This offer comes as recent shipping data showed a slowdown in navigation traffic within the Strait of Hormuz early this week, following reports of attacks targeting tankers. The very large crude carrier (VLCC) Noble, which loaded Iraqi Basra crude on July 25, departed the Strait on Friday, heading towards China. Separately, contracting data on Friday showed PetroChina provisionally chartered the VLCC Jamaica Prosperity to transport a Gulf-to-China shipment, with loading anticipated in early August from Iraq's Basra port.