Iraq Drastically Cuts Oil Prices to Attract Buyers Willing to Traverse the Strait of Hormuz

Odaily Planet Daily News Iraq is offering huge discounts to its long-term contract buyers for cargoes loading this month, but tankers must traverse the Strait of Hormuz and enter the deep waters of the Persian Gulf to pick up the crude. A notice from the Iraqi State Oil Marketing Organization (SOMO) shows that Iraq is offering discounts of up to $33.40 per barrel for its flagship Basra Medium crude oil. The document, dated (released on) May 3, lists a series of prices for different periods this month. The notice states 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 loading from May 1 to 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 below the official price. (Jinshi)