Iraq sells two million barrels of heavy crude at a premium of $ 1.4
Iraq sells two million barrels of heavy crude at a premium of $ 1.4
The Iraqi Petroleum Marketing Company (SOMO) has sold 2 million barrels of Basra heavy crude, up $ 1.37 a barrel above the official selling price, the Dubai Mercantile Exchange said on Thursday.
The large premium reflects the anticipated market conditions for heavy crude oil this year, as well as expectations of a reduction in the spot market in compliance with the OPEC agreement, the bourse said on its website.
The statement said that the above mentioned premium exceeded the premium to load the August shipment announced in the previous auction of $ 1.18.
Since last April, Somo has sold about 10 million barrels of crude oil through the Dubai Mercantile Exchange, according to the statement.
Dubai Energy announced at the end of last April that Sumo was selling 2 million barrels of Basrah Light crude through its highest price of 31 cents, added to OSP crude oil prices for Basrah Light Loading.
Iraq plans to increase its crude production capacity to 5 million bpd before the end of this year.
Iraq surpassed Saudi Arabia and Iran in the rate of production of Iraqi oil in June 2017, 4.502 thousand barrels per day.
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