Iraq's state oil marketer raised its September price for Basra Medium crude to Asian buyers, narrowing the discount against regional benchmarks. Brent and WTI held gains on Monday as uncertainty over reopening the Strait of Hormuz and fresh Houthi attacks on Saudi energy infrastructure kept supply risk elevated.
Iraq's State Oil Marketing Organization (SOMO) raised the September official selling price for Basra Medium crude to Asian buyers to minus $4 a barrel against the Oman/Dubai average, up from minus $6.50 a barrel in August. SOMO announced the move on Monday for the grade, which the state-owned Iraqi oil company markets across three global regions.
For Europe, SOMO set the September Basra Medium price at minus $4.85 a barrel against Dated Brent, while shipments to North and South America were priced at plus $5.10 a barrel versus ASCI.
Brent holds above $84 as Hormuz talks continue
Brent crude futures rose 1.0% to $84.39 a barrel on Monday. U.S. West Texas Intermediate crude climbed 0.8% to $78.84 a barrel, easing off earlier session highs after Brent's gains over the prior three sessions stayed above 5%.
Iranian Foreign Minister Abbas Araghchi said an agreement with Oman to establish a shipping route through the waterway was "very close," though he cautioned it would not immediately reopen the strait. Iran has ruled out direct talks with the United States for now, citing alleged violations of the interim peace agreement reached in June. Tehran also wants an end to the U.S. naval blockade, sanctions relief and compensation for war damage before agreeing to a full reopening.
Houthi attacks add to regional supply risk
Iran-backed Houthi militants claimed an attack on Saudi Arabia's Jazan refinery near the Red Sea, and Saudi Arabia said the resulting fire at the Aramco refinery was extinguished. ADNOC said three of its tankers were attacked while transiting Hormuz last week, and a separate ADNOC tanker was targeted in the strait over the weekend.
Technical picture stays volatile amid deal uncertainty
Even so, crude sold off last Tuesday as expectations grew for a U.S.-Iran deal, with Qatari mediators saying the language for a possible agreement had been drafted. U.S. Treasury Secretary Bessent said a deal could have come as soon as Wednesday and would have included reopening the strait. Those losses were trimmed after the timeline passed without an announcement, and mixed messages persisted about both the deal and the strait.
ANZ analysts said oil prices endured another volatile week, initially falling sharply after the U.S. said it would pause attacks on Iran, before recovering as it became clear any reopening could still impose significant restrictions on vessels using the waterway. The lack of U.S. attacks on Iran remains a positive signal that will likely keep a lid on oil prices unless tensions escalate again.
Sources: Investing.com, Investing.com, InvestingLive
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