Iraq seeks data on buyers’ oil usage

Major Opec producer Iraq would like to know how and where its oil will be used, as demand rises for Middle East cargoes to replace shipments from fellow group member Iran.

Iraq’s state-run Oil Marketing Co., known as SOMO, is asking buyers of its Basrah crude to specify the final destination country for its cargoes, people with knowledge of matter said.

While Iraq charges buyers the official selling price that it sets monthly, the shipments are regularly resold in the spot market at a premium to benchmark prices. Now, as negotiations are set to begin for 2019 supplies, SOMO is looking to potentially rein in the practice. The strategy is a U-turn from earlier this year, when Iraq was facing competition from the US and Africa, while the market was well supplied.