Iraqi Somo cuts May gasoline and gasoil imports: Update

Adds detail on the import cut process in paragraph 2

Iraq's state-owned oil marketer Somo will import no gasoline in May, and will cut imports of gasoil by around a third, because of falling demand for transport and power generation fuels caused by measures to combat Covid-19.

Somo awarded term tenders late last year to import 2.673mn t (61,000 b/d) of 95 Ron gasoline and 1.836mn t (37,500 b/d) of 0.05pc (500ppm) and 0.25pc sulphur gasoil into the southern port Khor al-Zubair this year. But lockdowns imposed by the government since mid-March have dampened demand. A mutual agreement was reached between Somo and the sellers in order to reduce the monthly quantity, although further details could not be confirmed.

Somo awarded its gasoline tender to South Korean refiner GS Caltex and Russian trading firm Litasco, at a $4/bl premium to Mideast Gulf spot 95 Ron assessments, and its gasoil tender to Litasco and Italian refiner Iplom at a premium of $4.46/bl to Mideast Gulf spot assessments.

Iraq has been gradually tightening restrictions on movement and public gatherings since the nationwide lockdown began on 22 March. The government initially said this would last until 28 March, but it has since been extended on more than one occasion and restrictions are now in place until 23 April. These policies have been implemented both in Iraq and in the northern semiautonomous Kurdistan region.

Schools, universities, shopping centers and other large gathering places are closed until further notice, as are airports.

The Iraqi authorities yesterday said that infections in the country were 1,574, and that 82 people have died.

By Sarah Raffoul