Shafaq News/ Iraq's State Oil Marketing Organization (SOMO) has decided to reduce the official selling prices of Iraqi crude oil for October shipments to Europe.
According to a report from S&P Global Platts, SOMO has cut the European OSPs for Basrah Medium crude to a discount of $4.70 per barrel below Dated Brent, and Basrah Heavy crude to a discount of $7.25 per barrel below Dated Brent. Both prices are down by 80 cents per barrel from September levels. The Kirkuk OSP remains unchanged at a discount of $1.00 per barrel to Dated Brent.
The suspension of flows of Iraqi Kirkuk and Kurdish Blend Test (KBT) crudes into the Mediterranean has been in effect since March 2023. This halt, resulting from a dispute between Iraq and Turkey, has cut off approximately 450,000 barrels per day of medium sour crude, primarily from the semi-autonomous Kurdistan region of northern Iraq.
For Asian buyers, SOMO has also reduced OSPs for October. Basrah Medium is priced at a discount of 50 cents per barrel to the average of Platts Oman/Dubai assessments, while Basrah Heavy is set at a discount of $3.50 per barrel to the same benchmark. In September, the differentials were zero for Basrah Medium and a discount of $3.00 per barrel for Basrah Heavy.
Prices for US buyers remain unchanged from September. Basrah Medium is priced at a discount of $1.10 per barrel to the Argus Sour Crude Index, and Basrah Heavy at a discount of $5.45 per barrel. The October OSP for Kirkuk is set at a premium of $1.25 per barrel.