Iraq exports 891,000 b/d of new crude grade Basrah Medium in Jan: SOMO sources

Amman — Iraq's federal government exported 891,000 b/d of the new Basrah Medium crude grade in January, comprising 32% of total oil exported from the southern Gulf terminals during that month, sources from the State Oil Marketing Organization told S&P Global Platts Feb. 3.

Basrah Light exports reached 1.097 million b/d, representing 40% of total exports, while Basrah Heavy stood at 782,000 b/d or 28% of the total, the sources said.

SOMO introduced Basrah Medium, with an API of 27-29, in January. In November, SOMO notified its customers that it was introducing this new grade to split Basrah Light into two crudes to support the stability of its crude export streams.

Iraq's crudes have been much heavier in recent years as new oil fields came on stream, changing their quality.

Basrah Light and Basrah Heavy exports have averaged around 2 million-2.2 million b/d and 750,000-800,000 b/d respectively, according to estimates by Platts.

Total Iraqi crude exports, including from the semi-autonomous Kurdistan region, fell slightly to 3.265 million b/d in January, from 3.288 million b/d in December, official data showed Feb. 1, indicating that its compliance with its OPEC+ production quota may have improved.

A 0.8% rise in federally controlled exports to 2.868 million b/d was more than offset by a 10.2% decline in Kurdish exports to 397,000 b/d, according to the data provided to Platts by SOMO.

SOMO OSPs

SOMO issued its February official selling prices, with a hike in differentials for all Asia-bound grades, a drop for Europe-bound grades and an increase for US-bound Light and Medium grades, according to a company notice dated Jan. 11.

For Asian buyers, SOMO set the February OSP for the new Basrah Medium crude at a discount of 25 cents/b to the monthly average of Platts Oman and Dubai assessments, an increase of 40 cents/b from January.

It raised the February OSP of Asia-bound Basrah Light crude by 70 cents/b from January to a premium of $1.10/b to the Oman /Dubai average, and also raised the region's Basrah Heavy OSP by 20 cents/b to a discount of $1.40/b against Oman/Dubai.

For cargoes loading in February and destined for Europe, the Basrah Light and Basrah Heavy OSPs were set at Dated Brent minus $1.50/b and minus $4.50/b respectively, down $1/b and $1.20/b from January.

The price for Europe-bound Basrah Medium crude loading in February was set at minus $3.15/b against Dated Brent, down $1.10/b from January.

The US-bound February OSP for Basrah Heavy was unchanged from January and set at a discount of $1.75/b against the Argus Sour Crude Index, while Basrah Light was raised by 5 cents/b from January against ASCI.