In a major development in the global energy market, Iraq has announced an extraordinary discount policy to increase crude oil sales, which aims to attract global buyers.
Iraq, a major OPEC member, has increased discounts, especially for those buyers who will receive oil deliveries through the Strait of Hormuz.
According to the Iraqi State Organization for Marketing of Oil (SOMO), a discount of up to $33.40 per barrel is being given on Basra medium crude oil loaded in early May. The discount will last from May 11 to 31 at $26 per barrel.
Similarly, Basra heavy crude oil will also be available at a lower price of about $30 per barrel during May, which is being considered a great offer for global buyers.
According to energy experts, this decision by Iraq may be part of a strategy to increase competition in the global oil market and increase its exports. After this move, there is a possibility of impact on prices in the global market and the supply chain.