• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 1 day "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 3 days What China is Learning from Russia's War in Ukraine and its Consequences
  • 10 hours Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 5 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

In Breakaway Move From Saudis, Iraq May Change Oil Pricing

In a bid to increase oil revenues and possibly setting the stage for its own benchmark crude grade, Iraq has told customers it may change the way it prices Basra crude for the Asian market, Reuters reported on Monday, quoting a letter by Iraq’s state oil marketing company SOMO it had seen.

According to SOMO’s letter, the company is asking customers for input regarding a plan to change the Basra crude pricing for Asia to Dubai Mercantile Exchange (DME) Oman futures beginning next year, dropping the average of Oman and Dubai quotes by S&P Global Platts.

“In an effort to realize the intrinsic value of our crude exports to Asia as to be in alignment with the recent market perception, we are contemplating a change of the current pricing formula for the Asian market,” Reuters quoted SOMO’s letter as saying. The letter is dated August 20 and asks for feedback from customers by August 31.

If implemented, the change would concern the pricing of around 2 million bpd of Iraq’s exports to Asia, nearly two-thirds of the daily Iraqi exports from the southern port of Basra.

While it is planning a possible pricing change for Asia, Iraq is not expected to alter the pricing to Europe and the U.S. in which it uses the Dated Brent and the Argus Sour Crude Index (ASCI), respectively. Related: Qatar Aims To Ease Its Reliance On LNG Exports

The Iraqi plan is also seen as a breakaway move from the leading Middle Eastern exporter, Saudi Arabia, whose official selling prices (OSP)—using S&P price assessments for decades--are usually followed by the other main producers in the region.

Middle Eastern crude benchmarks currently don’t include Iraqi crude grades, and this could be one of the reasons for Iraq studying a change.

“The Iraqis probably want to get in on the game of being a benchmark grade,” a Singapore-based oil trader told Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News