[Three-Layer Pricing]

① OSP list price (SOMO official, vs Oman/Dubai average): For December-loading Asia cargoes, Basra Light is set at a +$0.45/bbl premium to Oman/Dubai and Basra Heavy at a -$0.95/bbl discount. The Heavy grade narrowed sharply from November's -$5.80, reflecting SOMO's marginal tightening of the heavy tier amid its market-share defense. SOMO also confirmed it will launch a standalone "Basra Medium" grade in January 2027, split from Basra Light into Light (~33° API) and Medium (~29° API), comparable to Qatar's Al-Shaheen.

② Spot extra discount (term dark discount, FOB): Recent loading cargoes keep deep discounts — Light/Medium FOB dark discount around -$34.50/bbl, Heavy around -$37.00/bbl, still deeper than pre-war. This reflects Iraq's extra buyer incentive under geopolitics and fleet constraints.

③ Loadport premium & STS: Non-Hormuz loadings (Oman offshore STS at Fujairah) typically carry a further $5–13/bbl premium to benchmark; the November loading premium follows the prior mechanism (1st–10th ≥$0.20, 11th–30th ≥$3.00/bbl FOB STS).

[Net Delivered Discount] Net FOB ≈ OSP + spot dark discount: Light/Medium around -$34.05/bbl, Heavy around -$37.95/bbl. Adding freight and war risk (about $21–26/bbl per-voyage friction), delivered-to-China cost is roughly ICE Brent +$12–20/bbl. Anchor procurement on net delivered price, not the OSP list.

[Geopolitics & Freight] The November 4 US midterm result dominated the tape: Democrats retook both chambers, and the Vice President publicly attributed the GOP loss to the Iran war, reinforcing market expectations that the administration would pursue diplomatic de-escalation and avoid escalation. Crude plunged in a single session — Brent briefly fell more than 10% and broke below $100, WTI lost the $90 handle. On Hormuz, October set a record for tanker attacks (highest weekly pace of the year); Iran had earlier announced a full closure of the strait and taken fleet-wide action against South Korea's Sinokor, yet de-escalation signals drove a rapid risk-premium reversal. War-risk hull premium still holds at 6%–10% (vs 0.15%–0.25% pre-war), single-VLCC additional insurance $6–10 million; Lloyd's JWC still lists the entire Persian Gulf as a high-risk war zone. China's Foreign Ministry said it is willing to strengthen dialogue with regional countries including Saudi Arabia to prevent a renewed Middle East conflict.

[Practical Note] The tape is now politically driven and highly volatile; anchor procurement cost on net delivered price (net FOB + freight + war risk + STS premium). Iraqi Basrah grades (direct SOMO contract) are tradeable supply — prefer non-Hormuz loadings (Oman offshore STS) to avoid in-strait exposure. Under applicable sanctions-compliance red lines, this company does not provide trading services for crude of Iranian origin; this watch covers Iran only as objective geopolitical news.

Sources: SOMO official pricing notices, Jin10, Sina Finance, CCTV Finance, Xinhua Finance, Wallstreetcn, Tonghuashun futures, IEA public data, UKMTO, IMO, Lloyd's JWC, Hamer Intel public alerts. Public-sourced figures; refer to the latest official releases.