Iraq drastically cuts oil prices to attract buyers willing to cross the Strait of Hormuz.

Iraq is offering huge discounts to buyers on long-term contracts for shipments this month, but tankers must traverse the Strait of Hormuz and enter the depths of the Persian Gulf to pick up their cargo. A notice issued by the Iraqi National Oil Marketing Organization (SOMO) shows that Iraq is offering discounts of up to $33.40 per barrel for its flagship product, Basra Medium crude. The document, dated May 3, lists a series of prices for different periods this month. The notice states that if buyers accept SOMO's May offer, "the force majeure clause does not apply, given that the offer is made under existing special conditions known to all parties." The discount for Basra Medium crude for shipments between May 1 and 10 is $33.40 per barrel, narrowing to $26 per barrel thereafter; while the offer for Basra Heavy crude is $30 lower than the official price. (Jinshi)