Iraq’s ‘Oil Marketing Company’, SOMO, has sold its first cargo of Basra Light crude via an auction on the Dubai Mercantile Exchange (DME), trade sources have claimed.
The 2 million-barrel cargo was sold at 31 cents a barrel above its June official selling price (OSP).
It reportedly had a fixed destination of Asia to an unknown buyer, said multiple sources that participate in the market.
Asia’s crude demand could improve next month, one of the sources said, adding that the cargo’s scheduled loading date on June 26 would also give the buyer ample time to re-sell the oil.
The move could be a test for future Iraqi oil sales, potentially using DME as a platform for price discovery, trade sources had said.
It comes just dadys after reports that North Sea oil is flooding into Asia like never before thanks to the most competitive crude prices in seven years.
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