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Vitol buys at least 25 million barrels of discounted Iraqi crude

Iraqi state seller SOMO is offering September-loading crude at discounts of $15 to $20.8 per barrel to official selling prices, underscoring Baghdad’s strategy to keep volumes flowing through the Strait of Hormuz.

Reported · Written up by our desk · Energy

Vitol has bought at least 25 million barrels of Iraqi crude for September loading, according to OilPrice, in a deal that would make the trader Iraq’s second-largest customer after ADNOC.

The discounts highlighted in the report are steep, with Iraq’s State Oil Marketing Organization, or SOMO, offering September crude at $15 to $20.8 per barrel below its official selling prices, per a tender document.

OilPrice links the aggressive pricing to Baghdad’s need to maintain export momentum through the Strait of Hormuz, where disruptions could quickly change crude logistics and economics.

Latest closeWTI crude $95.27 ▲3.4%

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