Basrah crude prices fell, sharply diverging from the upward trend in global benchmarks. The decline underscored ongoing challenges for Iraq’s vital oil exports, even as international markets recorded notable gains.
Basrah Heavy crude slipped 1.36%, settling at $65.30 per barrel. Basrah Medium crude also dropped 1.36%, closing at $66.85 per barrel. These price drops marked a clear contrast with global crude futures, which moved higher during the same period. The weakness in Basrah grades highlights the regional factors affecting Iraq’s oil trade, including refinery demand shifts and competition from other exporters in the Gulf.
Therefore, in international markets, Brent crude futures rose 37 cents, or 0.57%, to trade at $65.72 a barrel by 04:01 GMT. At the same time, US West Texas Intermediate (WTI) crude gained 34 cents, or 0.55%, climbing to $62.12 per barrel. The modest global increase came as investors weighed supply cuts, demand recovery signals, and broader energy market trends.
Analysts said the drop in Basrah crude prices reflects local supply and demand pressures. Iraqi oil often sells at discounts. Quality differences, refinery preferences, and higher transport costs reduce demand compared to global grades like Brent.
Energy traders remain cautious, monitoring how Iraq’s State Oil Marketing Organization (SOMO) responds to market shifts. SOMO’s export strategy plays a central role in balancing Iraq’s crude sales, particularly when prices diverge from global benchmarks.
For now, the weakness in Basrah crude prices contrasts with stronger signals from global futures. This divergence reflects not only market volatility but also Iraq’s position within OPEC+, where production quotas and export allocations can influence price movements.
In conclusion, observers expect Iraq to continue adjusting its export strategies to remain competitive, but near-term price pressures may persist if regional demand stays limited and global supply trends further intensify market challenges.