Iraq’s State Oil Marketing Organization (SOMO) offered October-loading crude at discounts up to $37/bbl versus regional benchmarks, according to a Sept. 29 document covering Oct. 1–31 shipments. Basra Medium was quoted at a $34.50/bbl discount and Basra Heavy at $37/bbl, with exact benchmarks varying by destination. The steep cuts reflect Baghdad’s transport constraints amid Middle East hostilities—its distance from the Strait of Hormuz and lack of a large tanker fleet have forced deep price inc

Iraq’s State Oil Marketing Organization (SOMO) offered October-loading crude at discounts up to $37/bbl versus regional benchmarks, according to a Sept. 29 document covering Oct. 1–31 shipments. Basra Medium was quoted at a $34.50/bbl discount and Basra Heavy at $37/bbl, with exact benchmarks varying by destination. The steep cuts reflect Baghdad’s transport constraints amid Middle East hostilities—its distance from the Strait of Hormuz and lack of a large tanker fleet have forced deep price incentives to keep buyers routing cargoes via the Persian Gulf despite ongoing shipping risks.