Iraq cuts Basra crude prices for Asian buyers
Shafaq News- Baghdad
Iraq's State Oil Marketing Organization (SOMO) announced on Monday a reduction in the official selling prices of Basra Medium and Basra Heavy crude destined for Asian markets in December, setting discounts of $8.80 and $11.80 per barrel, respectively, against the average prices of Oman and Dubai crude in the previous month.
Global oil markets are facing renewed uncertainty as attention turns to the course of tensions between the United States and Iran, with the possibility of either a deal easing tensions or further military escalation disrupting energy supplies.
Iraq and Gulf countries are facing the effects of major production shutdowns amid regional tensions.
The US Energy Information Administration (EIA) expects average suspended oil production in Iraq, Kuwait, the United Arab Emirates, Iran, Qatar, Bahrain, and Saudi Arabia to reach around 4.47 million barrels per day in the fourth quarter of 2026. The figure is expected to decline to 2.68 million barrels per day in the first quarter of 2027, according to the agency's projections.
The EIA also expects disruptions to gas transportation routes in the Gulf to continue through 2027. It warned that any escalation between Washington and Tehran could further destabilize energy markets, while an agreement between the two sides could lead to a rapid decline in prices.
On Sunday, Iraqi Foreign Minister Fuad Hussein reiterated that Iraq had suffered estimated financial losses of around $60 billion after oil exports through the Strait of Hormuz were halted for nearly four months due to the war and regional tensions.
