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Neno's Place Established in 2006 as a Community of Reality


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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Iraq faces resistance from Asian buyers to change pricing of Basra crude

    Rocky
    Rocky
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    Iraq faces resistance from Asian buyers to change pricing of Basra crude Empty Iraq faces resistance from Asian buyers to change pricing of Basra crude

    Post by Rocky Sat 26 Aug 2017, 3:50 am

    Iraq faces resistance from Asian buyers to change pricing of Basra crude



    Iraq's proposal to change the pricing of its crude oil in Asia has faced opposition from refiners, which fear more risks because of a longer period between pricing and delivery.

    The Iraqi Oil Marketing Company (SOMO) surprised traders this week by seeking to explore their plans to change the benchmark price of Basra crude in Asia to be priced on the Dubai Mercantile Exchange starting in January 2018 rather than pricing on S & P Global Plas.

    The move would affect the price of about two million barrels per day of crude oil supplies to Asia, especially those destined for India, China and South Korea.

    "The change is important and will be closely watched, not only from the Middle East producers but from all those involved," said Oystein Bernstein, Managing Director of Strong Petroleum in Singapore.

    Under the new method, Basra crude will be priced using the monthly average price of Omani crude futures on the Dubai Mercantile Exchange two months before the oil is loaded. Other producers in the Middle East, such as Saudi Arabia, Kuwait and Iran, are pricing their raw materials based on the loading month.

    This means that Iraqi crude loading in October will be priced on the basis of futures on the Dubai Mercantile Exchange in August. This will expose buyers to risk, as they will only be notified by mid-September whether their bids have been accepted for purchases, making it difficult for them to pre-hedge price changes.

    "We are not in favor of that. They have to fix their (supply) program first before they try to change the benchmark price. " The buyer asked not to be named because he was not authorized to speak to the media in this matter.

    Traders say that the timing of the pricing of other producers makes it difficult to compare ore valuations.

    Some buyers are concerned that about 80 percent of the crude used to price Oman futures contracts on the Dubai Mercantile Exchange is going to China, reflecting the economic and fundamentals of only one Asian buyer.

    "The transition to Oman's contracts on the Dubai Mercantile Exchange is very ambitious," said Ady Emsirovic of the Center for Energy Economics at the University of Surrey in Britain. I think it will cause a few difficulties because it will be very difficult technically. "

    Somo did not comment on her motives for change. The move to the DME could bring higher prices to Somo. The monthly average price of Oman's crude oil contracts on the Dubai Mercantile Exchange (DME) was around $ 3 higher than the average of Oman and Dubai on the Plats platform between March and July of this year.

    Some traders support this move. Knowing the prices of Iraqi crude two months before the delivery gives traders who have shipments of Basra crude without specific destinations have more time to determine the destination they will sell oil based on the price differences in the region.

    It is not yet clear whether Sumo will go ahead with the move, as the company is expected to solve the problems customers have encountered, according to a source familiar with the Iraqi plan.

    Iraq may change the price of the measurement but still maintain the current pricing period at the moment, which means that the crude will continue to price based on the same month of loading.

    Platts, which dominates global oil pricing in the current market, declined to comment on how to respond to the possible withdrawal of OPEC's second largest producer.

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    Rocky
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    Iraq faces resistance from Asian buyers to change pricing of Basra crude Empty Basra crude faces resistance from Asian buyers to change its price

    Post by Rocky Sat 26 Aug 2017, 4:13 am

    Basra crude faces resistance from Asian buyers to change its price


    16:30 - 25/08/2017


    The Iraqi oil marketing company (SOMO) surprised traders this week by seeking to explore their plans to change the benchmark price of Basra crude in Asia to be priced on the Dubai Mercantile Exchange starting in January 2018 instead of pricing based on S & P Global Plats ratings.

    The move would affect the price of about two million barrels per day of crude oil supplies to Asia, especially those destined for India, China and South Korea.

    "The change is important and will be closely watched, not only from the Middle East producers but from all those involved," said Oystein Bernstein, Managing Director of Strong Petroleum in Singapore.

    Under the new method, Basra crude will be priced using the monthly average price of Omani crude futures on the Dubai Mercantile Exchange two months before the oil is loaded. Other producers in the Middle East, such as Saudi Arabia, Kuwait and Iran, are pricing their raw materials based on the loading month.

    This means that the Iraqi crude load October will be priced on the basis of futures on the Dubai Mercantile Exchange in August. This will expose buyers to risk, as they will only be notified by mid-September whether their bids have been accepted for purchases, making it difficult for them to pre-hedge price changes.

    Traders say that the timing of the pricing of other producers makes it difficult to compare ore valuations.

    Some buyers are concerned that about 80 percent of the crude used to price Oman futures contracts on the Dubai Mercantile Exchange is going to China, reflecting the economic and fundamentals of only one Asian buyer.

    Some traders support this move. Knowing the prices of Iraqi crude two months before the delivery gives traders who have shipments of Basra crude without specific destinations have more time to determine the destination they will sell oil based on the price differences in the region.

    It is not yet clear whether Sumo will go ahead with the move, as the company is expected to solve the problems customers have encountered, according to a source familiar with the Iraqi plan.

    Iraq may change the measurement price but keep the current pricing period at the moment, which means that the crude will continue to be priced based on the same month of loading.

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