Platts to publish Iraq's Basrah Medium OSPs from Feb 2021

S&P Global Platts will begin publishing official selling prices set by Iraq's State Oil Marketing Company, or SOMO, for its newly-launched Basrah Medium crude oil grade from February 2021.

This follows issuance of OSP of the new grade on Dec. 11.

SOMO publishes the OSPs as a differential against the price marker for the various geographical regions on a forward-month basis.

In Asia, the price marker is the monthly average of Platts Dubai and Platts Oman crude assessments. In Europe, the price marker is the monthly average of Platts Dated Brent crude assessments while in the US, the price marker is the Argus Sour Crude Index.

In February 2021, Platts will publish Basrah Medium OSP differentials as announced by SOMO for cargoes loading in March 2021. Platts will also publish Basrah Medium's outright OSPs by adding the differentials as set by SOMO to the monthly average of the respective regions' price markers for the month of loading.

The new OSP and differential will be published alongside existing ones for SOMO's Basrah Light and Heavy grades on PGA 1059.

SOMO is expected to begin 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 would comprise Basrah Light, Basrah Medium and Basrah Heavy.

Production of Basrah Medium is estimated to be about 1 million b/d.

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