Baghdad (IraqiNews.com) – Trade sources reported on Monday that Iraq’s national oil marketer, SOMO, and QatarEnergy are presenting crude oil through unusual bids that mandate purchasers to load cargoes within the Strait of Hormuz.
SOMO announced that it is offering Basrah Medium and Basrah Heavy crude for loading in September from either the Basrah oil port or a single point mooring, along with the necessary supporting facilities, as reported by Reuters.
QatarEnergy provided free-on-board oil loading at al-Shaheen, Qatar Marine, and Qatar Land ports in September and October.
Earlier, SOMO provided substantial discounts on Basrah crude in August to entice customers to load shipments from the Strait of Hormuz.
SOMO asked potential term purchasers to designate contractual volumes of Basrah Medium or Basrah Heavy crude for complimentary onboard delivery from the Basrah Oil Terminal or other port-related infrastructure.
Iraq’s oil marketer provided discounts ranging between $25 and $27 per barrel on Basrah Medium, according to the loading period. It provided discounts of $27.80 to $29.80 a barrel for Basrah Heavy.
Maritime traffic in the Strait of Hormuz decreased due to ongoing military operations in the region and heightened shipping security risks.
The significant price reduction aims to compensate for rising maritime insurance costs and freight expenses by transferring transit risk to purchasers.
