Iraq’s SOMO sells Oct Basrah Light via auction

29 August 2017 10:22 Source:ICIS News

SINGAPORE (ICIS)--Iraq’s state oil marketer SOMO has sold 2m barrels of Basrah Light crude for 23-28 October loading via on auction on the Dubai Mercantile Exchange (DME) on 28 August, the exchange confirmed late on Monday.

The October Basrah Light barrels were awarded at a $0.17/bbl premium to the grade’s October Official Selling Price (OSP).

Some 17 companies logged into the Basrah Light auction and 27 separate bids were received. This was the fourth auction of Basrah Light on the DME.

In the last DME auction for Basrah Light held on 21 June, SOMO sold 2m barrels of August Basrah Light at a $0.22bbl premium to the grade’s August OSP.

On 23 August, SOMO sold 2m barrels of 23-28 October Basrah Heavy crude via another auction on DME at a stronger premium of $1.63/bbl above the grade’s October OSP.

In the previous Basrah Heavy DME auction on 26 July, SOMO sold 2m barrels of September Basrah Heavy at a premium of $1.37/bbl above the grade’s September OSP. 

On 24 August, SOMO announced that July exports of Basrah crude, which comprises both Basrah Light and Basrah Heavy, from the southern Arab Gulf export terminals of Basrah and Khor Alamya totalled 100m barrels or 3.23m bbl/day. Previously, June Basrah exports totalled 97.5m barrels or some 3.25m bbl/day.

The DME is an energy-focused commodities exchange. It is a joint venture between Dubai Holding, Oman Investment Fund and CME Group.

The exchange’s flagship DME Oman crude futures contract is the benchmark for Oman and Dubai crude oil Official Selling Prices (OSP). Almost all Oman crude production is physically delivered via the DME Oman futures contract.

By James Dennis