Iraq Slashes February Basrah Medium Crude Export Discount to Asia to $1.30

Iraq has reduced the discount for Basrah Medium crude exports to Asia in February to $1.30 per barrel, signaling tighter supply dynamics and potential demand strength in the region. The adjustment impacts key crude benchmarks and energy markets globally.

Iraq has set the February export price for Basrah Medium crude to Asia at a $1.30 discount to Dated Brent, marking a notable tightening compared to prior months. The pricing decision, announced just ahead of the official monthly pricing window, reflects evolving supply positioning and demand expectations in Asia, a critical market for Middle Eastern crude. The $1.30 discount is a significant shift from earlier forecasts and previous month’s levels, suggesting stronger buyer interest or reduced oversupply in the region. As a top OPEC producer, Iraq’s pricing decisions influence global crude benchmarks, particularly Dated Brent and regional Asian crude indices. The move also affects the pricing of other benchmark crudes, including those tracked by BZ=F and CL=F, which are key indicators in global energy markets. Energy equities such as ExxonMobil (XOM), Chevron (CVX), and international oil majors with exposure to Middle Eastern crude (e.g., IMO) are likely to see reevaluations in their trading positions. Traders and refiners in Asia are adjusting inventory strategies and procurement plans in response to the tighter pricing structure, especially as the February delivery window approaches. The adjustment underscores the sensitivity of crude pricing to geopolitical and logistical factors in the Gulf, even amid ongoing regional volatility. As Iraq maintains a strategic role in global oil flows, changes in its export pricing policy remain a key market-moving event for both physical and futures traders.