Iraq Offers Deep Discounts on May Crude Amid Hormuz Blockage
Iraq offers May Basrah crude at discounts up to $33.40 per barrel. Steep price cuts follow shipping risks as the Strait of Hormuz remains largely blocked.
Iraq is offering May-loading Basrah crude at discounts reaching $33.40 per barrel for shipments inside the Strait of Hormuz. The price cuts follow a conflict with Iran that has largely blocked the critical waterway. For investors, these steep discounts signal the extreme risk premium required to move Iraqi barrels through an active conflict zone.
### Deep Discounts to Offset Shipping Risk State oil marketer SOMO offered Basrah Medium crude at a $33.40 discount to its May official selling price (OSP) for loading through early May. A separate window for the second half of the month carries a $26 per barrel discount, according to a May 3 notice seen by Reuters. Basrah Heavy crude is also available at a $30 per barrel discount to its OSP.
