Iraq’s SOMO cuts OSPs for October-loading crude oil to Europe

Iraqi state oil marketer SOMO lowered the official selling prices for October-loading of Iraqi crude oil shipped to Europe, according to a pricing notice emailed on Sept. 8.

SOMO cut the European prices to minus $4.70/b for Basrah Medium OSPs to Dated Brent and minus $7.25/b for Basrah Heavy. Both OSPs were down by 80 cents/b from September-loading levels.

The Kirkuk OSP was kept unchanged on the month at a discount of $1/b to Dated Brent, according to the notice.

Flows of Iraqi Kirkuk and Kurdish Blend Test (KBT) crudes into the Mediterranean have been suspended since March 2023, when a dispute between Iraq and Turkey led to suspension of flows of Iraqi crude via the Turkish port of Ceyhan.

The pipeline closure has prevented roughly 450,000 b/d of medium sour crude, most of it produced in the semi-autonomous Kurdistan region of northern Iraq, from reaching the Mediterranean market.

Beyond Europe

SOMO also cut October OSPS for Asian buyers. It set prices for Basrah Medium to Asia minus 50 cents/b to the average of Platts Oman/Dubai assessments. The Basrah Heavy OSP was set at a discount of $3.50/b to the same benchmark. The differentials in September were zero for Basrah Medium and a discount of $3/b for Basrah Heavy.

Prices for US buyers of Iraqi crude in October are unchanged from September. Basrah Medium was set at a discount of $1.10/b to the Argus Sour Crude Index and Basrah Heavy at a discount of $5.45/b to the benchmark. Kirkuk’s October OSP was set at a premium of $1.25/b.