U.N. Gives Nod To Iraqi Price Revisions
The U.N. sanctions committee approved Iraq’s proposed price revisions for February crude shipments, U.N. officials said on February 6th.
Iraqi state oil marketer SOMO had proposed that the price of February sales of its Kirkuk grade crude to Europe be lowered by 25 cents to Dated Brent minus $3.25.
SOMO also asked for a 10-cent reduction in February prices for sales of its Basrah Light and Kirkuk crudes to the U.S. Basrah Light shipments to the U.S. will be priced at second-month West Texas Intermediate (WTI) minus $8.45 a barrel, while Kirkuk shipments to the U.S. will be priced at first-month WTI minus $8.15. Prices for Basrah Light sales to the Far East and Europe will remain unchanged for the month.
Iraq had requested the changes to the official selling prices, which had been approved by the committee in mid-January, due to falling prices of competitive crudes.
The U.N. also reported on February 6th that Iraqi oil exports had risen 120,000 b/d to 1.89 million b/d during the week ended February 2nd.
Eight cargoes were loaded during the period, marking the most liftings since the ninth phase of the oil-for-food program started on December 6th. Oil sales have averaged about 910,000 b/d for the phase, down sharply from the usual 2.3 million b/d.
Iraqi oil sales have been halted numerous times since Baghdad pulled the plug on exports on November 30th, due to a pricing dispute with the U.N. and crude customers.
Large Western buyers had refused to comply with Iraq’s demand that they pay an illegal surcharge into a non-U.N. account.
© 2001 Mena Report (www.menareport.com)