Oil price agency S&P Global Platts is proposing to start price assessments for Iraqi Basrah Light and Basrah Heavy crude oil cargoes on a free-on-board (FOB) Basrah basis from Nov. 1, the company said in a subscriber note on Thursday.
These new assessments will be added to its existing prices for Basrah Light on a delivered U.S. Gulf Coast basis, the company, a unit of S&P Global Inc, said.
They will be for cargo sizes of 1 million barrels each for both grades.
“Platts’ new assessments would reflect crude traded on a destination-free basis,” the company said in the note.
For each grade, Platts will publish a differential to its official selling price for the month of loading as well as an outright price.
The planned launch of the two price assessments follows talks with industry participants amid an “evolution in the quality and markets for Basrah crude and their growing popularity among Asian refiners,” Platts said.
Exports of the two grades are estimated at a combined 2 million barrels-per-day, it added.
The company has invited feedback from its clients by Oct. 6.
Source: Reuters (Reporting by Jessica Jaganathan; Editing by Richard Pullin)