Take the oil yourself: Iraq offered unprecedented discounts

Iraq offers huge discounts on oil, but with the condition that buyers themselves will take the raw materials from the country and transport them through the Strait of Hormuz.

In order not to further reduce oil production, Iraq offered customers huge discounts on oil that has already been loaded onto tankers or has yet to be done.

"The OPEC producer is offering discounts of up to $ 33.40 per barrel on its flagship Basrah Medium variety," Bloomberg reports, citing documents from the Iraqi state marketing company SOMO.

As noted in the agency, "force majeure does not apply to this proposal, since it was issued under existing exceptional conditions already known to all parties."

"Basrah Medium, loaded from May 1 to May 10, has a discount of $33.40 per barrel, which is reduced to $ 26 for the rest of the month, and Basrah Heavy is offered at $30 below official prices," writes Bloomberg.

Separately, the agency reports, SOMO offers Qaiyarah oil through a spot tender, although, according to traders, barrels also need to be loaded into The Persian Gulf.

Iraq became one of the most affected countries after the start of the Iranian war. Baghdad has only exports from Iraqi Kurdistan through Turkey. The rest of the production has to be gradually reduced, since the Strait of Hormuz is closed.

The day before, the United States promised to provide a safe corridor for ships through the strait in Omani territorial waters. However, so far shipowners do not risk sending tankers by this route either.