Iraq reduces official selling price of oil going to Asia and the United States of America

but raised the OSP slightly to Europe, the state oil marketing company said on
Monday.

The move follows a sharp reduction to Saudi Arabia’s crude oil OSPs to Asia and the United States last week, in what many analysts and traders have said suggests countries are competing to hold on to market share in an oversupplied market.

Iraqi state oil marketer SOMO cut the Basrah Light crude OSP to Asia in January to minus $4.00 a barrel versus the Dubai/Oman average from minus $2.50 a barrel in December.

SOMO cut the Basrah Light OSP to the United States in January to Argus Sour Crude Index (ASCI) minus 40 cents a barrel from ASCI minus 10 cents a barrel in December, while prices to Europe rose slightly to dated Brent minus $4.35 a barrel in January from minus $4.45 a barrel in December.

The state oil marketer also published prices for Kirkuk crude, which is expected to flow through the Kurdistan Regional Government’s independent pipeline for sale at the Turkish Mediterranean port of Ceyhan following a deal between Baghdad and Arbil last week.

Kirkuk was priced at dated Brent minus $2.90 a barrel to Europe, and at ASCI plus $1.75 a barrel to the United States.

Supplies of Kirkuk have largely been shut off since Islamist militants damaged Baghdad’s main northern export pipeline earlier this year. Under the new deal, up to 300,000 barrels per day of Kirkuk crude will be exported to Ceyhan.