An Arab country is the biggest loser from Russia's sale of oil at reduced prices.. How is that?

An Arab country is the biggest loser from Russia's sale of oil at reduced prices.. How is that?

Iraq has become one of the biggest losers from the flow of cheap Russian barrels to Asia with lukewarm demand on its main grades.

Traders on grades said Oil, that there were no immediate purchases of Basra Medium Crude or Basra Heavy Crude so far in the current Asian trading session, while no tender was awarded for the sale of heavy oil, as India and China are usually considered major buyers of these items, although they boosted purchases Russian crude oil reduced after the invasion of Ukraine.

Basra Medium and Heavy crudes are the two main types that Iraq exports to international markets, so any reduction in volumes or prices would be a blow to the second largest producer in OPEC . Dealers said that sellers of heavy oil discussed offering shipments at a discount on the official selling prices to attract buyers, according to Bloomberg Agency, which was reviewed by Al Arabiya.net.

There is also another aspect that weakens The attractiveness of Iraqi grades, the type of fuel that can be produced, as Basra medium and heavy crude tends to produce more and less profitable fuel oil, which is used in power and shipping stations, while refiners seek to pay a greater premium on oil that produces more lucrative refined products such as diesel And gasoline, which is in high demand.

The Iraqi grades are intermittent in Asia, where strong demand led to an earlier than usual start of the trading cycle for the purchase of actual crude. By comparison, shipments of Murban oil in Abu Dhabi – which produces more diesel – traded at a premium of between $10 and $11 a barrel compared to the Dubai index this month.