TechFlow news: On May 5, Iraq is offering substantial discounts to long-term contract buyers shipping this month, but tankers must transit the Strait of Hormuz to load cargo deep inside the Persian Gulf. A notice issued by Iraq’s State Organization for Marketing of Oil (SOMO) shows that Iraq is offering discounts of up to $33.40 per barrel on its flagship Basrah Medium crude oil.
The document is dated May 3 and lists a series of prices for different time periods this month. The notice states that if buyers accept SOMO’s May pricing offer, “given that this offer is issued under special conditions known to all parties, force majeure clauses do not apply to this offer.”
For Basrah Medium crude oil loading between May 1 and May 10, the discount stands at $33.40 per barrel; thereafter, the discount narrows to $26 per barrel for the remainder of the month. Meanwhile, Basrah Heavy crude oil is priced $30 per barrel below the official price. (Jinshi)
