Economy News – Baghdad
The Iraqi Oil Marketing Company (Somo) has announced adjustments to the official sales prices for crude oil earmarked for loading in April, targeting both the Asian and European markets. This development comes as eight OPEC+ producers, Iraq included, prepare to reintroduce additional barrels to the market this month.
For April, the official selling prices for Basra Mediterranean and Heavy Crude oil have decreased by $0.50 per barrel compared to March’s pricing, aligning with average assessments from Oman and Dubai.
Specifically, the price for Basra Crude for Asian buyers has been set at a premium of $2.15 per barrel over Oman/Dubai benchmarks, whereas Heavy Basra Crude now carries a discount of $0.90 per barrel.
In Europe, official pricing for both grades has also experienced a reduction, albeit to a lesser extent compared to the changes seen in the Asian market. Basra Mediterranean Crude is being sold to Europe at a $1.50 per barrel discount relative to Brent’s benchmark price, reflecting a decrease of 25 cents per barrel from the previous month.
Furthermore, Heavy Basra Crude is priced with a discount of $4.15 per barrel against Brent for April, an adjustment from a $4.05 discount in March.
Meanwhile, pricing for Basra’s heavy and medium crude exports to North and South America remained unchanged month-over-month. Notably, Iraqi Kirkuk crude has seen an increase, with sales to the Americas set at a premium of $1.50 per barrel above the Argus Summit Index, marking an increase of $0.30 per barrel.
The Kirkuk official sales price for European customers stabilized at a premium of $1.00 per barrel over Brent crude.
These modest price adjustments for shipments to Asia and Europe underscore Iraq’s ongoing strategy to enhance crude supply in April, a move that may exert downward pressure on the broader crude oil market.
As a member of a group of eight voluntary OPEC+ countries, Iraq currently maintains 2.2 million barrels per day of crude production off the market. The group has recently reiterated plans to gradually return these barrels to market beginning in April, despite previous delays attributed to market fluctuations.
According to OPEC’s outlined plans, Iraq’s crude production is projected to rise by 12,000 barrels per day in April, although the country remains committed to rectifying any excess production in 2024.
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