Iraq offers deep discounts on October crude oil, with maximum concessions of $37 per barrel
智通财经2026/09/30 12:06Show original
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- An official document dated September 29 shows that Iraq’s State Oil Marketing Organization (SOMO) is selling October-loading crude oil at prices significantly below regional benchmarks, with maximum discounts reaching $37 per barrel, covering shipments from October 1 to 31.
- The reason for such large discounts lies in the transportation predicament Iraq faces amid the current Middle East conflict: its export terminals are farther from the Strait of Hormuz, making detours costlier than for many neighboring countries, and it lacks its own large oil tanker fleet, relying on external shipping capacity.
- With ongoing shipping risks through the Strait of Hormuz and buyers adopting a wait-and-see attitude, Baghdad can only attract buyers to continue picking up shipments via the Persian Gulf by using the extreme measure of “exchanging price for volume,” thereby shouldering higher transportation and risk premiums.
- Specifically, Basrah Medium crude is discounted by $34.50/barrel versus the regional benchmark, and Basrah Heavy crude by $37/barrel, with the depth of the discount varying depending on the export destination.
- For the market, this is both an individual signal of Iraq’s maritime exports being hindered and forced to yield profits, and, on the other hand, indirectly proves that the actual physical supply of crude oil is not tight— even if geopolitical conflicts push up freight and risk, sellers still need to use low prices to maintain sales, putting downward pressure on overall oil prices.
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