Cutting foor

摘要

Asia-Pacifc demand for Iraqi medium sour Basrah Light will remain robust in January, as Iraq tries to blunt concerns over quality by cutting offcial prices. Iraqi offcial crude marketer Somo followed Saudi Aramco’s lead and cut its offcial price for January Basrah Light sales to Asia-Pacifc term buyers by $1.50/ bl from December. Eastbound cargoes are valued at a $4/bl discount to the benchmark Oman-Dubai average, the widest in at least 18 years, and still more than 50￠/bl lower than Aramco’s formula price for Arab Medium (see graph, upper left). The price cut buys Somo some time with Asia-Pacifc refners not fully satisfed with revisions to Basrah Light quality compensation payments (AGM, 12 December, p3). Somo will increase payments for cargoes heavier than 27?API, although the level falls short of buyer expectations by 20-40￠/bl.