Prized Iraqi Basrah Oil Sees Fire Sale as China Demand Wanes
- Basrah Light sold at discount in Asia first time since 2017
- Grades from Russia, U.A.E. have also traded at lower prices
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China’s cooling demand is continuing to wreak havoc on the physical oil market in Asia, with Iraq’s prized Basrah Light crude sold at a discount to its official selling price for the first time since 2017.
BP Plc and China National United Oil Corp. both sold prompt cargoes of the medium-sour crude for August loading at a steep discount, according to traders with knowledge of the matter. That follows the recent sale of other grades from Russia and the U.A.E. at lower prices, with Chinese purchases muted after a record buying spree and consumption slipping due to massive flooding.