Dubai Mercantile Exchange hosted its latest auction on Wednesday, on behalf of Iraq’s National Oil Company (Somo).

The 2-million barrel cargo of Basrah Heavy was awarded at a premium of $1.37 per barrel over the September Basrah Heavy Official Selling Price (OSP).  28 companies logged into the auction with 17 active bidders and more than 25 bids during the two-minute auction.

Over 50 companies have now registered with DME to access Somo auctions, a DME statement said.
Somo has sold a total of 10 million barrels of crude oil via DME Auctions since April. In June, a Basrah Heavy cargo for August loading was auctioned at a premium of $1.18 per barrel.

The stronger premium for the September-loading cargo reflects the anticipated tighter market for heavy crude oil later in the year, with Opec cuts expected to reduce availability in the spot market, the statement said.

DME is the premier international energy futures and commodities exchange in the Middle East. It aims to provide oil producers, traders and consumers engaged in the East of Suez markets with transparent pricing of crude oil. – TradeArabia News Service