Iraq applies sharp increases to OSP for August-loading cargoes to Asia

Quantum Commodity Intelligence –Iraq's State Oil Marketing Organization has increased its Official Selling Prices for Asian buyers lifting August crude oil, according to reports.

SOMO set the OSP for its flagship Basra Light grade at Platts Dubai/Oman +$2.25/b to Asia, up from +$1.45/b from June.

Basra Medium to Asia was also hiked by $0.80/b to Platts Dubai/Oman and set at +$1.35/b, while Basra Heavy was increase by $0.75/b to Dubai/Oman at -$0.65/b.

Basra Light directionally follows Saudi Arab Medium, a similar-quality grade, which was also increased by $0.80/b for August-loading.

The increases were largely expected with August-crude seen tight in the absence of an OPEC+ agreement to increase production next month.  

Saudi Arabia and UAE remain deadlocked on the deal to add 400,000 bpd in August and a total of 2 million barrels by year end.

Quantum assessed Dubai crude $73.50/barrel on Monday, up $0.50/b on pre-weekend levels, while Oman was also assessed $0.50/b higher at $73.55.