Iraq Follows Saudis Discounting Oil for Asia to 11-Year Low
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Iraq will sell its Basrah Light crude next month to customers in Asia at the steepest discount in at least 11 years, following Saudi Arabia’s lead as Middle Eastern producers seek to defend market share.
Basrah Light, a high-sulfur oil used by refiners including China Petroleum & Chemical Corp., was set at $4 a barrel below the average of Middle East benchmark Oman and Dubai grades, according to a statement from Iraq’s Oil Marketing Co. yesterday. That’s the lowest since at least August 2003, when Bloomberg started compiling the data. The official selling price to U.S. buyers was cut by 30 cents compared with December, while shipments to Europe were marked up by 10 cents.