Iraq’s SOMO raises August crude price differentials to Asia and Europe

Shafaq News – Baghdad

Iraq's state oil marketing organization (SOMO) announced on Monday an increase in the official selling price differentials for most crude grades destined for Asia, Europe, and the Americas for August loadings.

The only exception was Basrah Medium crude to North and South America, whose August official selling price was lowered to a discount of $1.15 per barrel against the August Argus Sour Crude Index, compared to a $1.05 discount in July.

For Asian buyers, SOMO set the August differential for Basrah Medium at a premium of $1.35 per barrel over the Platts Oman/Dubai average, up from a $0.30 premium in July. Basrah Heavy was priced at a discount of $1.70 per barrel, an improvement from a $2.70 discount in the previous month.

In Europe, the Basrah Medium differential rose to minus $0.55 per barrel versus dated Brent, compared to minus $1.30 in July. Basrah Heavy was priced at minus $3.15 per barrel, up from minus $3.65. Kirkuk crude bound for Europe was set at a premium of $2.90 per barrel, up from $1.90 in July.

For North and South America, Basrah Heavy for August was set at a discount of $5.10 per barrel, slightly improved from $5.20 in July. The price of Kirkuk crude remained unchanged at $1.50 per barrel.

Iraq, the second-largest oil producer in OPEC after Saudi Arabia, is seeing rising output in line with other members of the OPEC+ alliance, which includes Russia.

Under the production agreement announced on July 5, Iraq’s output quota is set to increase to 4.171 million barrels per day in August, up from 4.03 million barrels per day in June.