As Brent Oil Falls
Iraq will sell Basra Light crude to Asia at the biggest discount since January 2009. It joined Iran in following Saudi Arabia’s lead to significantly lower export prices. The scale of November’s cut could be the start of a price war among Persian Gulf producers.
Iraq set the Basra Light at $3.50 below the average of Oman and Dubai prices, the Gulf benchmark. State-run National Iranian Oil Company has also cut its selling prices to its Asian customers at the biggest discount in almost six years, matching Saudi Arabia.
Brent crude fell another 2 percent in London today to $88.83 a barrel for November delivery, as demand slows globally and output expands in the U.S. and Russia.
The American output increased to 8.8 million barrels a day in the week ended 3 October, the most since 1986. Russia boosted its output to 10.61 million barrels a day.
File photo: Iran’s oil export terminal at Kharq (Getty Images)