conomy News _ Baghdad
Seven well-informed sources said on Tuesday that the Iraqi Oil Marketing Company (SOMO) made deep cuts to Basra crude supplies destined for Asia in July, in light of the commitment of the producer to the OPEC + agreement to reduce supplies.
The Iraqi supply cut comes after a similar reduction from the world's largest oil exporter Saudi Arabia.
Both producers are members of the Organization of the Petroleum Exporting Countries, which agreed earlier this month with allies including Russia, within the framework of the OPEC + group, to extend unprecedented production cuts of 9.7 million barrels per day for a third month until the end of July.
Iraq, already late for its goal, is taking measures to further reduce production and exports since June.
As for July, Basra crude supply cuts to Asia between 30 and 100 percent of the contracted volumes, the sources said, adding that the degree of reduction varied from one buyer to another.
A source said, “Some did not receive any provision.”
The sources said that the discounts for two Indian buyers amounted to about 36 percent and 75 percent of the contracted monthly volumes.
They added that the total volume of Basra crude supplies for the month of July is expected to decrease between 15 and 20 percent on average.
The newly appointed Iraqi Oil Minister said on Monday that Iraq intended to export 2.8 million barrels per day of Basra crude from its southern ports in June.
It was not yet possible to contact SOMO for comment outside of business hours.
The reduction in crude supplies from OPEC countries + the prices of high-sulfur crude in the Middle East and Russia have pushed up in Asia, prompting buyers to try to save oil from other regions, traders say.
economy-news.net/content.php?id=20734
Seven well-informed sources said on Tuesday that the Iraqi Oil Marketing Company (SOMO) made deep cuts to Basra crude supplies destined for Asia in July, in light of the commitment of the producer to the OPEC + agreement to reduce supplies.
The Iraqi supply cut comes after a similar reduction from the world's largest oil exporter Saudi Arabia.
Both producers are members of the Organization of the Petroleum Exporting Countries, which agreed earlier this month with allies including Russia, within the framework of the OPEC + group, to extend unprecedented production cuts of 9.7 million barrels per day for a third month until the end of July.
Iraq, already late for its goal, is taking measures to further reduce production and exports since June.
As for July, Basra crude supply cuts to Asia between 30 and 100 percent of the contracted volumes, the sources said, adding that the degree of reduction varied from one buyer to another.
A source said, “Some did not receive any provision.”
The sources said that the discounts for two Indian buyers amounted to about 36 percent and 75 percent of the contracted monthly volumes.
They added that the total volume of Basra crude supplies for the month of July is expected to decrease between 15 and 20 percent on average.
The newly appointed Iraqi Oil Minister said on Monday that Iraq intended to export 2.8 million barrels per day of Basra crude from its southern ports in June.
It was not yet possible to contact SOMO for comment outside of business hours.
The reduction in crude supplies from OPEC countries + the prices of high-sulfur crude in the Middle East and Russia have pushed up in Asia, prompting buyers to try to save oil from other regions, traders say.
economy-news.net/content.php?id=20734