According to Bloomberg, after receiving complaints about bad crude quality, the Iraqi government decided to launch exports of a new heavy oil grade called Basrah Heavy.
On Monday, Basrah Heavy will already be exported for the first time from a port in the Persian Gulf. Until now, Iraq sold Basrah Light to its consumers. This grade has a higher price than Basrah Heavy as its processing involves larger costs. Deterioration in quality of Basrah Light occurred after new wells had been put on stream in Iraq.
“This step is not only necessary but a must to preserve Iraq’s crude reputation,” Iraqi oil minister, Adel Abdul Mahdi, said on his Facebook page. Iraq is separating heavy from light oil for the first time, he added. By selling both oil grades, Iraq can guarantee their quality standards and get the best export price.
In April 2015, Iraq reached the highest levels in oil production in 30 years. The volume of exhausted crude amounted to 3.8 million barrels per day. The exports also increased to 3.1 million barrels daily. This data was published by the International Energy Agency.
