Iraq slashes oil prices to attract buyers willing to cross the Strait of Hormuz

Odaily reported that Iraq is offering huge discounts to buyers with long-term contracts for cargoes loading this month, but tankers must cross the Strait of Hormuz and enter the deep waters of the Persian Gulf to collect the crude. According to a notice issued by the Iraqi State Oil Marketing Organization (SOMO), Iraq is offering a discount of up to $33.40 per barrel for its flagship Basra Medium crude oil. The document, dated (issued on) May 3, lists a range of prices for different periods this month. The notice shows that if buyers accept SOMO’s May offer, "given that this offer is made under the existing special conditions known to all parties, the force majeure clause does not apply to this offer." The discount for Basra Medium crude oil loaded between May 1 and 10 is $33.40 per barrel, narrowing to $26 per barrel for the remainder of the month; while the offer for Basra Heavy crude oil is $30 per barrel lower than the official price. (Jin Shi)