Platts launches Basrah Medium crude assessment Feb. 1, 2021

S&P Global Platts has started publishing price assessments for Iraqi Basrah Medium crude oil on an FOB basis from Feb. 1, 2021.

The assessments reflect 1-million-barrel cargoes of Basrah Medium loading from Iraq on a free-on-board basis. In line with other Platts assessment for crudes around the world and in the Middle East, Platts' new assessments reflect cargoes traded on a destination-free basis. Spot market trades for cargoes with regional restrictions in place would be normalized in value to reflect open destination.

Platts first proposed the launch of Basrah Medium assessments in a subscriber note published Dec. 17: https://bit.ly/3oActK9

Platts publishes outright Basrah Medium assessment in USD/barrels for two consecutive months from the month of publication. In addition to the outright assessment, Platts publishes a differential to the grade's official selling price for the month of loading. For example, in February, Platts is publishing outright prices and differentials to OSP for Basrah Medium cargoes loading in March (M+1) and April (M+2).

Platts assesses the value of Basrah Medium cargoes using information on bids, offers and trades in the Middle East Sour Market on Close assessment process, trades on exchanges, tenders and in the over-the-counter markets. Platts outright assessments for Basrah Medium reflect traded values for the grades, without any adjustment in value due to quality differences from contractual standards.

Platts understands that a system of API de-escalators is in place for Basrah Medium for any deviation in quality from contractual standards. The API standard for Basrah Medium is currently set at 29 degrees and with a quality de-escalator of 40 cents/b per one degree change in API. Sulfur content is estimated around 3% by weight.

SOMO has started regular shipments of Basrah Medium crude starting January 2021, after it announced plans in November to further split the Basrah crude stream. In 2015, Iraq segregated the Basrah crude stream into Basrah Light and Basrah Heavy to improve and stabilize the quality of the crude oil it exports. From January 2021, Basrah crude grades comprise Basrah Light, Basrah Medium and Basrah Heavy.

Platts existing assessments for Basrah Light and Basrah Heavy crudes continue to reflect SOMO's contractual quality specification that have changed from cargoes loading January 2021. Platts understands SOMO has set contractual API density for Basrah Light at 33 degrees and Basrah Heavy at 24 degrees. The quality de-escalator for Basrah Light and Basrah Heavy remain unchanged at 40 cents/b/API degree and 60 cents/b/API degree, respectively.

The new assessments appear in the Platts Crude Oil Marketwire, Platts Oilgram Price Report, Platts OPR Price Average Supplement and on Platts Global Alert on pages 2220, 2228, 2221, 2229 and in the Platts assessment database under the following price symbol codes:

Code description Code

Basrah Medium at Singapore MOC Mo01 BSMAM01

Basrah Medium at Singapore MOC Mo01 MAvg BSMAM31

Basrah Medium at Singapore MOC Mo02 BSMAM02

Basrah Medium at Singapore MOC Mo02 MAvg BSMAM32

Basrah Medium vs OSP Mo01 BSMBM01

Basrah Medium vs OSP Mo01 MAvg BSMBM31

Basrah Medium vs OSP Mo02 BSMBM02

Basrah Medium vs OSP Mo02 MAvg BSMBM32

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