• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 3 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 8 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 8 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 6 hours Did China cherry-pick the factors that affected the economic slow-down?
  • 2 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 5 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 3 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 3 days Nord Stream - US/German consultations
  • 5 days An Indian Opinion on What is Going on in China
  • 409 days Class Act: Bet You've Never Seen A President Do This.
  • 3 days Australia sues Neoen for lack of power from its Tesla battery
  • 2 days Forecasts for Natural Gas
  • 5 days Storage of gas cylinders
Australia Is Making The Most Out Of The Coal Boom

Australia Is Making The Most Out Of The Coal Boom

The recent energy shortage in…

The Battle For Oil Market Share Heats Up Within OPEC

The Battle For Oil Market Share Heats Up Within OPEC

Middle Eastern producers have maintained…

Iraq Looks To Squeeze Out Resellers Of Its Crude

Iraq is increasingly edging out resellers of its Basra crude grades on the spot market as its state oil marketing company SOMO aims to have greater share and control over the lucrative spot market for its crude, S&P Global Platts reports, citing oil traders.

SOMO has started to warn its term crude cargo buyers against becoming spot sellers of destination-restricted cargoes on the secondary market. This move is not unusual for Middle Eastern oil producers—most of Middle Eastern oil producing nations don’t allow the resale of oil cargoes under term contracts, Platts notes.

The strategy of Iraq’s state oil marketing company had already led to a slowdown in spot trading activity in the European market earlier this month. In early November, demand for sour crude grades in Europe was higher due to the low appetite for Iranian crudes just ahead of the U.S. sanctions on Iran amid no clarity on possible U.S. waivers for Tehran’s oil customers. Trading sources told Platts at the time that SOMO had sent letters to companies in which it reminded them that their term contracts with Iraq don’t allow resale of cargoes on the spot market.

Spot trades in Iraqi crude continued to drop throughout November, leaving scarce liquidity in the December trading cycle, because the reminder that buyers aren’t allowed to resell cargoes removes the buying incentive and flexibility for resale for Basra oil buyers, according to traders who spoke to Platts.

Due to SOMO cracking down on resale of term barrels, Asian refiners in South Korea and Japan will struggle to find Iraqi crude cargoes with destination for Asia on the spot market, a Singapore-based trader with a Chinese company told Platts.

Meanwhile, Iraq is also looking to grab a higher market share in Asia, allocating 67 percent of its 2019 oil sales to the world’s fastest-growing oil demand region, and aiming to boost its oil supply to China by 60 percent next year. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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