Iraq's SOMO raises Feb OSPs for Asia-bound crude, lowers for Europe

Singapore — Iraq's State Oil Marketing Organization 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.

SOMO is expected to begin regular shipments of Basrah Medium crude starting January, after it announced plans in November to further split the Basrah crude stream.

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 February OSP for Europe-bound Kirkuk was set at Dated Brent minus 30 cents/b, down by 80 cents/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.

The OSP for US-bound Kirkuk was lowered by 10 cents/b month on month to a premium of 90 cents/b against ASCI.

The February OSP for the new Basrah Medium crude bound for the US was set at a discount of 80 cents/b against ASCI, down 10 cents/b from January.

Platts reported Nov. 24 that SOMO had set the contractual specific density for Basrah Medium grade at 29 degrees and for Basrah Light crude at 33 degrees.

For any slippage below the contractual API, SOMO would compensate the buyers of both grades at a rate of 40 cents/b per API, according to sources close to the matter.

For Basrah Heavy, the contractual specific density is set at 24 degrees with 60 cents/b per API for any slippage in the density, the sources said.