Iraq Offers Significant Discounts on Oil Shipments for May

Iraq is providing substantial discounts to long-term contract buyers for oil shipments scheduled this month. According to Odaily, the oil must be transported through the Strait of Hormuz to be collected deep in the Persian Gulf. A notice from Iraq's State Oil Marketing Organization (SOMO) reveals that Iraq is offering discounts of up to $33.40 per barrel for its flagship Basra Medium crude oil. The document, dated May 3, outlines a range of prices for different periods this month. The notice states that if buyers accept SOMO's May pricing scheme, the force majeure clause will not apply due to the known special conditions under which the offer is made. Discounts for Basra Medium crude oil are set at $33.40 per barrel for shipments from May 1 to May 10, narrowing to $26 per barrel for the rest of the month. Meanwhile, Basra Heavy crude oil is priced $30 below the official rate.