SOMO announces August selling prices

23 July 2003
The State Oil Marketing Organisation (SOMO) on 22 July announced August official selling prices for Basra light crude from the Mina al-Bakr export terminal and said that it was negotiating with refiners to enter term contracts. SOMO has only issued two crude tenders since the war, one in June for 8 million barrels held in storage during the conflict and one in early July for 8 million barrels of post-war production from the southern Rumailla field (MEED 9:7:03). Current output stands at about 900,000 barrels a day (b/d), with looting and sabotage causing repeated delays to restoration of output at a higher level. No exports have yet taken place from the northern Kirkuk fields because of problems with the pipeline carrying crude to the Ceyhan export terminal.

Prices ($/barrel) for August f.o.b. Mina al-Bakr were announced as follows:

US: WTI 2nd month less $4.95

Europe: Dated Brent less $2.90

Asia: Average Oman/Dubai parity

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