Iraq’s state oil marketer SOMO has slashed discounts on Basrah crude for July term contracts, offering significant reductions below official selling prices to incentivize buyers to lift cargoes from its Middle East Gulf terminal.
Trade sources and document reviews indicate the move is designed to clear inventory quickly, reflecting a shift from volume preservation to cash-flow urgency.
The aggressive discounting comes as Basrah Heavy crude prices have already retreated sharply, falling $2.
The aggressive discounting comes as Basrah Heavy crude prices have already retreated sharply, falling $2.75 to settle at $47.73 per barrel in recent trading.
This 5.45% decline mirrors a broader softening in global energy benchmarks, but the specific pressure on Iraqi grades highlights the country’s struggle to maintain market share without relying on cartel support.
The pricing strategy unfolds against a backdrop of escalating friction between Baghdad and OPEC.
Iraqi officials have signaled they are considering all options, including a potential exit from the cartel, if production quotas are not significantly increased.