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For discounts of its crude oil sales, Iraq tracks Saudi Arabia
Thursday, 13 November, 2014
Iraq priced its crude more competitively in the U.S. while raising costs for customers in Asia and Europe, mirroring moves a week ago by Saudi Arabia, the world’s largest oil exporter.
The second-biggest producer in the Organization of Petroleum Exporting Countries is offering December cargoes of its Basrah Light grade to the U.S. at a discount to the local benchmark, instead of a premium charged in November, the country’s Oil Marketing Co., known as SOMO, said today. Saudi Arabia reduced prices last week for December shipments to the U.S.
Olivier Jakob, managing director at Petromatrix GmbH in Zug, Switzerland, said by e-mail, “The trend setter is Saudi Arabia, the others follow.”
Global oil prices slid into a bear market last month on speculation the biggest OPEC producers were discounting their crude to maintain market share, resisting calls to cut output amid slowing demand growth.
December shipments of Basrah Light to North and South America were set at a discount of 10 cents to the Argus Sour Crude Index, known as ASCI. They were set at premiums of 40 cents last month. Iraq also reduced U.S. prices for its Kirkuk grade to $1.75-a-barrel premium, from $2 in November.
Iraq narrowed the discount on sales of Basrah Light to Asia to $2.50 a barrel below the regional benchmark, from $3.15 in November. Discounts were also narrowed to Europe.
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Thursday, 13 November, 2014
Iraq priced its crude more competitively in the U.S. while raising costs for customers in Asia and Europe, mirroring moves a week ago by Saudi Arabia, the world’s largest oil exporter.
The second-biggest producer in the Organization of Petroleum Exporting Countries is offering December cargoes of its Basrah Light grade to the U.S. at a discount to the local benchmark, instead of a premium charged in November, the country’s Oil Marketing Co., known as SOMO, said today. Saudi Arabia reduced prices last week for December shipments to the U.S.
Olivier Jakob, managing director at Petromatrix GmbH in Zug, Switzerland, said by e-mail, “The trend setter is Saudi Arabia, the others follow.”
Global oil prices slid into a bear market last month on speculation the biggest OPEC producers were discounting their crude to maintain market share, resisting calls to cut output amid slowing demand growth.
December shipments of Basrah Light to North and South America were set at a discount of 10 cents to the Argus Sour Crude Index, known as ASCI. They were set at premiums of 40 cents last month. Iraq also reduced U.S. prices for its Kirkuk grade to $1.75-a-barrel premium, from $2 in November.
Iraq narrowed the discount on sales of Basrah Light to Asia to $2.50 a barrel below the regional benchmark, from $3.15 in November. Discounts were also narrowed to Europe.
LINK [You must be registered and logged in to see this link.]
