Iraq has set floor prices for its Basrah Medium oil offered via a tender for loading in September from outside the Strait of Hormuz, a tender document reviewed by Reuters showed on Tuesday.
Iraq’s national oil company SOMO is asking participants in its tender, issued last month, for a premium over the destination market benchmark, the document shows, and a trade source confirmed.
For September 1 to 10 lifting SOMO is asking for a minimum premium of 20 cents per barrel over the destination market benchmark, and for September 11 to 30 loading cargoes a floor of $3 per barrel premium has been set, the document shows.
Participants have to place revised offers within a day, the trade source said.
Iran’s state news agency IRNA reported last month that Tehran has granted permission for a number of Iraqi oil tankers to pass through the Strait of Hormuz following repeated requests from Baghdad through various channels.
(Reporting by Nidhi Verma, Editing by Louise Heavens)