Trade sources and a document show Iraq's State Organization for Marketing of Oil
(SOMO) has sharply cut July official selling prices to entice long-term buyers
to lift Basra crude from its Gulf terminals. Basra medium crude discounts are
$14–16/bbl and Basra heavy $16.80–18.80/bbl, with the deepest discounts for July
1–5 loadings and smaller discounts for July 6–10 and July 11–31 loadings. SOMO
requires buyers to submit order volumes within one day of notification. Trade
sources said the large discounts may attract buyers but whether passage through
the Strait of Hormuz will be possible remains uncertain.
