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Asia’s Thirst for Cheap Russian Oil Hits OPEC’s No. 2 Producer

  • Spot trades for Iraq’s Basrah crudes slow to pick up: traders
  • Buyers also favoring grades that yield more diesel, gasoline

Iraq may end up as one of the biggest losers from cheap Russian barrels flowing to Asia with lukewarm demand for its key grades.

There have been no spot purchases of Iraq’s Basrah Medium or Basrah Heavy crude so far in the current Asia trading cycle, while a tender to sell Heavy oil didn’t get awarded, said traders who buy and sell the grades. Typically, India and China are major buyers of these varieties, although they’ve boosted purchases of discounted Russian crude after the invasion of Ukraine.