1. Three-Layer Pricing

OSP list price: Iraq's State Oil Marketing Organization (SOMO) set the December Asia OSP at a 0.35 USD/bbl discount to Oman/Dubai for Basrah Medium and a 0.95 USD/bbl discount for Basrah Heavy — a sharp tightening from November (Medium -2.80, Heavy -5.80).

Spot dark discount (term rebate): Recent-loading cargoes show FOB spot dark discounts of about -34.50 (Medium) and -37.00 (Heavy) USD/bbl, deeper than pre-conflict levels.

Loading premium +30% STS mechanism: Off-Hormuz loadings (days 1–10 ≥0.20, days 11–30 ≥3.00 USD/bbl, offshore STS transfer) plus freight and war risk form the "net delivered" price.

2. Net Delivered Discount

Net delivered discount (vs Oman/Dubai): Medium ≈ -37.3, Heavy ≈ -42.8 USD/bbl; all-in delivered cost ≈ ICE Brent +12~20 USD/bbl. Procurement should anchor on net delivered price, not OSP list.

3. Hormuz & Geopolitics

At 06:55 UTC on Nov 2, a tanker was struck by two unidentified projectiles ~72 nm east of Ras Al Khafji, Saudi waters (UKMTO/Hamer Intel), re-injecting security risk into a core energy lane. Iran disclosed a "two-day plan" to reopen Hormuz, with Qatar mediating for three days; meanwhile PGSA imposed a full fleet countermeasure on South Korea's Sinokor from Nov 1 (the operator held over 50% of VLCC traffic in early October, with at least 7 vessels hit). War-risk insurance stays at 6%–10% of hull value (single VLCC voyage surcharge 6–10 million USD).

4. Practical Notes & Compliance

Freight plus war risk (about 21–26 USD/bbl transit friction) remains the dominant delivered-cost driver; lock prices on a net-delivered basis and pad schedules by at least one week. The SNSUC Crude Watch covers only Iraq's SOMO Basrah series as tradable supply; the Iran origin is constrained by sanctions-compliance red lines, and our company provides no trading services for that origin. Sources: SOMO official, CCTV Finance, Jin10, Sina Finance, China Fund, Tonghuashun, Wallstreetcn, Hamer Intel, UKMTO, IEA public data.