Revival movement

摘要

Formula price cuts and a stronger fuel oil market are underpinning Asia‐Pacifc demand for Iraqi medium sour Basrah Light in October-November. Iraqi marketing frm Somo cut offcial formula prices for sales of Basrah Light to Asia‐Pacifc by $1.50/bl for October, following Saudi Aramco’s lead (AGM, 12 September, p1). The move will help the grade compete with surging crude imports from the Atlantic basin (AGM, 29 August, p2). And strong fuel oil markets are likely to further boost buying interest in the Iraqi grade — and other medium and heavy sour Mideast Gulf crudes — as the higher-demand fourth quarter progresses. Fuel oil has frmed to a discount of less than $7/bl to Dubai crude in Singapore, its highest in over 14 months (see graph, top left).