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Iraqi crude sales hit by rumours of scrapping of surcharge
Nicosia, July 20: Already-depressed Iraqi crude sales are being further hit by rumours of an impending lifting of the surcharge Baghdad slaps illegally on oil exports, the Middle East Economic Survey (MEES) said in its July 22 edition.
Nicosia, July 20: Already-depressed Iraqi crude sales are being further hit by rumours of an impending lifting of the surcharge Baghdad slaps illegally on oil exports, the Middle East Economic Survey (MEES) said in its July 22
edition.
"A preference for delayed liftings has emerged with the few Kirkuk buyers deciding to wait until august to lift their cargoes instead of taking the risk of paying a premium at this stage in case the surcharge is lifted soon," MEES said. The Cyprus-based specialist newsletter reported that the problem of depressed Iraqi oil sales had been "accentuated by widespread rumours in the market about the imminent lifting of the 15-cent surcharge, which is keeping interested buyers away until the picture becomes clear."
Iraq's UN-supervised oil exports plunged to 1.24 million barrels per day (BPD) in the first six months of 2002 from the targeted 2.2 million bpd. The sharp decline in exports led Iraq's State Oil Marketing Organisation (SOMO) last month to reduce the premium it levies illegally on oil exports to 15 us cents a barrel from 30 cents for exports to the US and 25 cents for Europe.
Last year, Britain and the United States forced a tougher pricing policy on the Security Council's sanctions committee in response to the surcharges.
The price, which was previously determined at the start of each month by the oil overseers in consultation with the Iraqi oil ministry, is now set retroactively by the committee.
Bureau Report
"A preference for delayed liftings has emerged with the few Kirkuk buyers deciding to wait until august to lift their cargoes instead of taking the risk of paying a premium at this stage in case the surcharge is lifted soon," MEES said. The Cyprus-based specialist newsletter reported that the problem of depressed Iraqi oil sales had been "accentuated by widespread rumours in the market about the imminent lifting of the 15-cent surcharge, which is keeping interested buyers away until the picture becomes clear."
Iraq's UN-supervised oil exports plunged to 1.24 million barrels per day (BPD) in the first six months of 2002 from the targeted 2.2 million bpd. The sharp decline in exports led Iraq's State Oil Marketing Organisation (SOMO) last month to reduce the premium it levies illegally on oil exports to 15 us cents a barrel from 30 cents for exports to the US and 25 cents for Europe.
Last year, Britain and the United States forced a tougher pricing policy on the Security Council's sanctions committee in response to the surcharges.
The price, which was previously determined at the start of each month by the oil overseers in consultation with the Iraqi oil ministry, is now set retroactively by the committee.
Bureau Report