Iraq Slashes Oil Prices for Buyers Willing to Transit Hormuz
An oil and gas field near Basra, Iraq in April.
Photographer: Hussein Faleh/AFP/Getty Images
Iraq is offering its term buyers huge discounts for crude loaded this month, but tankers will have to transit the Strait of Hormuz to collect the barrels deep inside the Persian Gulf just as hostilities flare in the region.
The OPEC producer is offering discounts to official prices of as much as $33.40 a barrel for its flagship Basrah Medium crude, according to a notice from state oil marketer SOMO seen by Bloomberg News. The document is dated May 3, and lists a range of pricing levels during different periods this month.