Iraq's SOMO issues rare tender for Basra Medium crude

London (Quantum Commodity Intelligence) Iraq's State Oil Marketing Organization has issued a tender offering 1 million barrels of Basra Medium crude for loading May 29-31.

The tender, which was sent to prospective buyers Tuesday, asks for bids as a premium to the Basra Medium OSP for May.

Earlier this week SOMO set the OSP for May-loading Basra Medium for Asia at Platts Dubai/Oman average +$0.60/b, an increase of $0.50/b from April.

The tender is expected to awarded early next week.

Basra Medium has proved a popular grade among customers in Asia, having been separated out from Basra Light/Heavy in late 2020.

Basra Medium has a production capacity of around 1.1 million b/d, but traders say SOMO is producing below that capacity in order to comply with OPEC+ cuts.

SOMO currently exports around 2.9 million b/d split fairly evenly between the three grades, although Basra Light is the largest export grade, followed by Medium and then Heavy.

Iraq typically looks to sell 70% of its exports to Asia and the balance to Europe and the US.