Iraq's state-owned oil marketer Somo has increased the official formula prices for the majority of its April-loading crude exports to Asia-Pacific and Europe.
Somo has raised the April formula price for Basrah Medium to its core Asia-Pacific market by 95¢/bl on the month, while the April Basrah Heavy price has been lifted by $1.95/bl. Rival state-controlled Saudi Aramco increased the April prices of its comparable Arab Medium and Arab Heavy grades for its Asia-Pacific customers by 90¢/bl and $2.50/bl, respectively.
Somo has raised the April prices of its Europe-bound exports of Basrah Medium and Basrah Heavy by $1.25/bl and $1.75/bl, respectively, but it has left the formula price of Kirkuk blend to Europe unchanged at a $1.45/bl discount to the North Sea Dated benchmark. Somo combines northwest Europe and the Mediterranean into one marketing area, while rival Mideast Gulf producers issue separate prices for those regions.
Somo's European prices are broadly in line with the month-on-month adjustments implemented by Aramco. For northwest European customers, the Saudi company raised the April price of Arab Medium and Arab Heavy by $1.30/bl each compared to March. For Mediterranean-bound exports, Aramco implemented a $1.00/bl and $1.30/bl month-on-month increase for Arab Medium and Arab Heavy, respectively, on both fob Sidi Kerir and fob Ras Tanura sale terms.
Somo has lifted the April Basrah Medium price for its US customers by 30¢/bl on the month, but it has left the prices of US-bound Basrah Heavy and Kirkuk unchanged. Aramco left the prices of all its April-loading crude exports to the US unchanged.
| Somo official crude formula prices | $/bl | ||
| April | March | ± | |
| Europe (versus Dated) | |||
| Basrah Medium | -5.70 | -6.95 | 1.25 |
| Basrah Heavy | -9.50 | -11.25 | 1.75 |
| Kirkuk | -1.45 | -1.45 | 0.00 |
| US (vs. ASCI) | |||
| Basrah Medium | -1.20 | -1.50 | 0.30 |
| Basrah Heavy | -6.15 | -6.15 | 0.00 |
| Kirkuk | 1.00 | 1.00 | 0.00 |
| Asia-Pacific (vs. Oman/Dubai average) | |||
| Basrah Medium | -0.15 | -1.10 | 0.95 |
| Basrah Heavy | -3.90 | -5.85 | 1.95 |
| Source: Somo | |||
