Iraq cut down on its crude grade pricing for the month of October to all its Asia and US markets following the same reductions by Saudi Arabia and other Gulf producers. This is seen as a signal that a global demand rebound isn't delivering as expected.
Buyers in Asia will be enjoying a lower price for Basrah Light crude as Iraq's state oil marketing company is reducing the grade's cost to 30 cents a barrel over the regional benchmark. This will be the lowest level since June and down from a$1.50 premium in September.
Basrah Heavy now will set at $1 a barrel discount for Asia and Iraq will be cutting on all its pricing for the United States. Basrah Light will be set at 40 cents a barrel premium to benchmark, Basrah Heavy at 75-cent discount and Kirkuk at $1.35 premium.
For Europe, Iraq will be cutting most grades to the following: Basrah Light at 70 cents a barrel discount, Basrah Heavy discount will go down further to $2.65, and Kirkuk down 30 cents a barrel premium.