Iran, Iraq Follow Saudis in Fight for Asian Oil Market

Iran and Iraq cut prices for March crude oil deliveries to Asia to the lowest in more than a decade following Saudi Arabia’s move to reduce prices to the lowest in 14 years. Iraq’s Basrah Light will sell $4.10 a barrel below the benchmark used for Persian Gulf crude deliveries to Asia, the lowest since 2003. Iran’s NIOC lowered its official selling price for March to a discount of $2.10 a barrel, the lowest since 2000. (Washington Post/Gulf News, 15 February)

The price war signals the battle for a share of Asian markets, OPEC’s largest, for the Gulf producers.

“This is an effort by some producers to protect market share,” said Sarah Emerson, managing principal of U.S.-based ESAI Energy “It’s really straightforward; cutting prices is how you keep your foot in the door.” (Washington Post, 15 February)