Basra and Kurdistan ores are an alternative to Russian Ural ore
Economy breaking Kurdistan oil Basra crude Rough Russian
The last remaining European buyers of Ural acid crude are looking for Russian-grade alternatives in order to fulfill contracts and ensure the productivity of European refineries, after the EU ban on the fifth of December, which marks a shift in the lists of European refineries.
S&P Global Platts, quoting one of the traders, reported that the crude blend (CPC Kazakh) has seen an increasing demand as a Light grade that can be easily mixed with alternative sour ores to produce an alternative of medium acidity from the Urals," indicating that
they "bought the Kazakh CPC Blend and the Iraqi Basrah medium Basrah in order to run them together to produce ore similar to the Russian Urals to supply futures buyers to Europe.
The trader added that the test ore of the Kurdish blend and the CPC Blend is also being put into operation together as an alternative to the Urals.
One trader noted that he had heard that the Mediterranean Basra was flowing more to Europe last month, adding"it is an alternative to the Urals".
Kepler's shipping data supports this opinion with 77 thousand barrels per day flowing from the average Basra to Europe in October compared to September.
About 377,000 barrels per day were bound for Europe in October compared to 129,000 barrels per day in December 2021, the last full month of flight data before the war in Ukraine.
This comes at a time when the Iraqi oil marketing company Sumo lowered the official selling price for all its categories in November in a surprise move to claim a larger market share in Europe.
"Iraqi sumo and Saudi Aramco have to make prices acceptable to compete with other regions such as Latin America and other sulphuric acid producers,"said another trader.