Iraq is reconsidering its previously announced plan to switch its price benchmark for Asian-bound crude from the Platts’ Oman-Dubai average to DME Oman futures, Reuters reports.
In a letter to its customers, Iraq’s Oil Marketing Company (SOMO) said it needed more time to consider the change, according to Reuters.
Iraq’s announcement last month of the change garnered some pushback from industry sources, Reuters previously reported.
The change would have applied to the roughly 2 million barrels per day (b/d) of Basra crude that Iraq ships to Asia, according to previous Zawya reports. Exports to other regions were to remain unaffected.
Other major regional producers base their pricing decisions on the S&P Global Platts’ Oman-Dubai average.