AlwaysFree: Iraq To Introduce New Crude Grade For Exports

Iraq’s Oil Marketing Company (SOMO) has informed its overseas buyers that it would introduce a new crude grade in January, Reuters reported, citing two people familiar with the matter. According to the people, the new medium-sour crude, called Basra Medium, will be produced by splitting Basra Light production into two different grades. Basra Medium will be Iraq’s third export crude grade after Basra Light with an API graffiti of around 33 degrees and Basra Heavy crude with an API number of approximately 24. Meanwhile, Basra Medium will have an API  gravity of about 29 degrees, similar to al-Shaheen crude grade from Qatar. Market participants said the new grade could help stabilize Iraq’s crude quality for the export market. Customers are required to notify SOMO by November 13 about the volume of each grade they plan to purchase in 2021. However, Basra Medium can be nominated as an additional quantity for next year.