2025-03-11T10:07:40+00:00

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Shafaq News/ Iraq’s State Oil Marketing Organization (SOMO)
has lowered its official selling prices (OSP) for April crude oil shipments to
Asia and Europe as OPEC+ prepares to ease supply restrictions, a source told
Shafaq News on Monday.

Iraq is part of an eight-nation OPEC+ group withholding 2.2
million barrels per day (bpd) from the market. The coalition has confirmed it
will gradually restore these barrels starting in April, following previous
delays due to market conditions. Under the plan, Iraq’s production quota will
rise by 12,000 bpd next month, while Baghdad has pledged to comply with OPEC+
output targets and offset previous overproduction in 2024.

For Asian buyers, SOMO cut Basrah Medium and Basrah Heavy
crude prices by 50 cents per barrel from March, based on Platts’ Oman/Dubai
crude assessments. Basrah Medium’s April OSP was set at a premium of $2.15 per
barrel over Oman/Dubai, while Basrah Heavy was priced at a discount of 90 cents
per barrel.

For European buyers, Basrah Medium’s April price was set at
a $1.50 per barrel discount to Brent, a 25-cent decrease from March, while
Basrah Heavy’s discount widened to $4.15 per barrel against Brent, compared to
$4.05 the previous month.

For American buyers, SOMO kept Basrah Medium and Basrah
Heavy crude prices unchanged. However, Kirkuk crude’s OSP increased, with April
shipments priced at a $1.50 per barrel premium to the Argus Sour Crude Index,
up 30 cents from March. Kirkuk crude’s price for European buyers remained at a
$1 per barrel premium to Brent.