Indian refining companies purchased October-loading Iraqi crude on a free-on-board (FOB) basis after Iraq's State Oil Marketing Organization (SOMO) completed a tender, according to traders familiar with the matter.
Indian Oil Corporation bought about 1 million barrels of Basra Medium crude.
The cargo was priced at a discount of roughly US$23 to US$28 per barrel to the Dubai benchmark.
Note: FOB means the refinery must arrange its own vessel to transport the crude.
Note: Bharat Petroleum Corporation chartered a tanker last month to ship Iraqi crude through the Strait of Hormuz. This differs from wartime practice; previously, traders would typically lift Iraqi crude first and then resell it to refining companies.
Comments