Iraq has lowered the price of its flagship crude for US clients, a sharp divergence from what Saudi Arabia did just a few days ago with its barrels.
According to a price list from Iraq's state oil marketing business, Basrah Light barrels would be offered at a discount of $1.15 per barrel to a regional benchmark in October for purchasers in the Americas. In comparison, the comparable marker for September has a modest premium of 15 cents per barrel.
The move is noteworthy since, like many Middle Eastern countries, Baghdad rarely deviates much from Saudi Arabia's pricing policy. However, the country maintained its flagship product, Arab Light, at a $1.35 per barrel premium for October unchanged from September.
Iraq dropped rates for buyers everywhere except for Kirkuk barrels sold from a Mediterranean Seaport; those were not altered.
With Hurricane Ida, halting a substantial portion of the region's output, oil production in the Gulf of Mexico has been drastically reduced.