Iraq to break with oil tradition in debut supertanker auction
OPEC’s second biggest oil producer is experimenting with an alternative way to get more cash for its crude: putting its cargoes up for auction. Iraq on Friday will try to sell a supertanker of Basra Light crude oil via auction on the Dubai Mercantile Exchange, in a move observers say is a response to intensifying […]Anjli Raval and David Sheppard write for Financial Times:
OPEC’s second biggest oil producer is experimenting with an alternative way to get more cash for its crude: putting its cargoes up for auction.
Iraq on Friday will try to sell a supertanker of Basra Light crude oil via auction on the Dubai Mercantile Exchange, in a move observers say is a response to intensifying competition with rival producers following a three-year slump in prices.
The method of selling the 2m barrel cargo marks a sharp break from the traditional long-term supply deals the Middle East’s biggest producers have relied on to sell their oil to traders and refiners, and comes as they remain locked in a battle to find new ways to get the best price from customers.
