Iraq Sharply Cuts Oil Prices to Attract Buyers Willing to Cross the Strait of Hormuz

Odaily Planet Daily News: Iraq is offering substantial discounts to long-term contract buyers for cargoes loading this month, but tankers must cross the Strait of Hormuz and enter the deeper waters of the Persian Gulf to take delivery. 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 (release date) May 3, lists a series of prices for different periods this month. The notice indicates that if buyers accept SOMO's offer package for May, "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; meanwhile, the offer for Basra Heavy crude oil is priced $30 below the official selling price. (Jin Shi)