Iraq has announced a reduction in the official selling price (OSP) for its crude oil exports to both Asia and Europe for the month of April. This decision comes as OPEC+ prepares to relax its production limitations.
According to Quantum Commodity Intelligence, Iraq has lowered the OSP for its Basrah Medium and Basrah Heavy crude grades destined for the Asian market by 50 cents per barrel. The Basrah Heavy grade is now being offered at a 90-cent-per-barrel discount, while the Basrah Medium OSP has been adjusted to a $2.15-per-barrel discount.
Although not as substantial, price reductions have also been applied to exports to Europe. For April, the difference between Basrah Medium crude and the Dated Brent benchmark for Europe is set at $1.50 per barrel, marking a decrease of 25 cents per barrel from March. The price of Basrah Heavy crude for April will be $4.15 per barrel lower than Dated Brent, a slight increase from March’s $4.05 per barrel discount.
As a member of OPEC+, Iraq has been holding back over two million barrels per day from the market to comply with the group’s production cuts. After delays caused by global market dynamics, OPEC+ has revealed plans to gradually bring these barrels back to the market starting in April.
Iraq has pledged to follow OPEC+ production targets and make up for past overproduction by increasing its output limit by 12,000 barrels per day in April 2024.