Standard & Poor’s Global Plats said in a note to subscribers on Thursday it was proposing to begin assessing the price of Iraqi Basrah Light and Basrah heavy cargo shipments on FOB delivery in Basra from November 1.
These new valuations will be added to their current prices for Basrah light crude on delivery at the US coast on the Gulf of Mexico, Platts, a unit of Standard & Poor’s Global, said.
Assessments for shipments of 1 million barrels per barrel will be for both.
“The new Platts valuations will reflect rolling crude without a specific destination,” the company said in the note.
Platts will publish a price difference for both crude for its official selling price for the month of loading plus a direct price.
Platts said the crude price assessment plan came after talks with industry participants amid growing demand for crude from Asian refiners.
The crude exports are estimated at 2 million bpd, she said.
Platts called on its clients to present their views by Oct. 6.