Iraqs State Oil Marketing Organisation (SOMO) has signed an agreement with oil traders Vitol and Glencore to buy more than 1.5mn tonnes of gasoil through 2014
According to Reuters, SOMO will buy four cargoes of 500 parts-per-million (ppm) of sulphur gasoil from Vitol and three cargoes of the same product from Glencore for delivery into the Khor Al-Zubair Terminal next year.
A company source said SOMO will pay a premium of US$7.37 per barrel, along with insurance and freight charges.
As per terms of its 2013 contract, Iraq paid a premium of US$7.99 per barrel for 1.1mn tonnes of gasoline purchased from traders.
Iraq uses gasoil to generate power in its country. It relies on imports for its fuel needs, making it one of the biggest buyers of gasoline and gasoil in the region, the news agency reported.
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