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July Kirkuk price for Europe being reviewed, says Iraq
REUTERS
London, July 2: Iraq is reviewing its July Kirkuk price for Europe after the spot market value for rival Russian Urals plunged to a discount of more than $4 a barrel below dated Brent, an Iraqi oil official said on Wednesday."The Kirkuk price is under consideration," the oil official said. "We are watching the market closely. It's a difficult situation."The UN, last Tuesday, approved Iraq's proposal of dated Brent -$2.95 FOB Ceyhan for July Kirkuk. After freight is added, Kirkuk would land at roughly dated Brent -$2, traders said. The Iraqi grade looks at least $2 a barrel over-priced given the current delivered price of dated Brent -$4 for Russian Urals, market sources said."We've told SOMO (Iraqi oil marketer) that at least for the first half of July, Kirkuk is $2 out of the money," a lifter of Iraqi barrels said. "They are going to have real problems getting people to lift." Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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