Iraqi oil marketer Somo has taken the unusual step of selling October-loading crude on the spot market before announcing term allocations. Somo has issued tenders to sell 2mn bl each of Basrah Light and Basrah Heavy for loading in October. Bidders can name their preferred three-day loading win- dow for the crude, and can choose to ship either cargo to Asia-Pacifc, Europe or the Americas, or resell them. Somo is asking for bids by 20 August at premi- ums to its yet-unpublished October ofcial formula price for cargoes bound for Asia-Pacifc. The volumes are separate to monthly term allocations rather than rejected term supplies, with up to 7mn bl of spot Basrah crude made available each month. Confning the tender’s pricing basis to Asia-Pacifc is likely to limit the number of bidders. The Asia-Pacifc pricing basis has historically yielded Somo the highest revenues for its crude sales. It also curbed demand from European refners in most spot tenders in February-May.
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