1. Three-layer pricing

① OSP official formula (SOMO, vs Oman/Dubai average): for December-loading Asia cargoes, Basra Medium (currently the Basra Light sulphur benchmark ahead of the January 2027 split into a standalone 'Basra Medium' grade) carries a +$0.45/bbl premium to Oman/Dubai, a sharp tightening from November's Medium -$2.80 (up $3.25); Basra Heavy sits at a -$0.95/bbl discount, narrowing from -$5.80 (up $4.85). Both grades tightened, reflecting SOMO's rebalancing between market share and differentials.

② Spot extra discount (term dark discount, FOB): recent loading cargoes keep deep discounts — Medium around -$34.50, Heavy around -$37.00/bbl (deeper than pre-war) to hedge freight and war risk.

③ Loadport premium & STS: non-Hormuz loadings (Oman offshore STS at Fujairah) typically add a further $5–13/bbl premium to benchmark; the November layday mechanism persists: ≥$0.20 for days 1–10, ≥$3.00/bbl for days 11–30 (offshore STS transfer).

2. Net delivered discount

Net FOB ≈ OSP + spot dark discount: Medium ≈ +0.45 − 34.50 ≈ −$34.05/bbl; Heavy ≈ −0.95 − 37.00 ≈ −$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. Procurement should anchor on net delivered price, not the OSP list.

3. Macro & geopolitics

Latest settlement: Brent front-month (Jan) $97.92/bbl (−0.7%, down), WTI front-month (Dec) $91.79/bbl (−0.9%, down); after the prior week's surge, prices swung violently — an intraday range near $19 since Monday — as traders weigh signs of a US–Iran de-escalation. On Hormuz: on Nov 6 the IRGC claimed further tankers struck mines and caught fire (unverified); the same day the Marshall Islands-flagged product tanker MT Velos Sapphire was hit by a suspected missile, killing one seafarer (confirmed by the vessel manager); war-risk hull premium has surged about 12x to 3% of hull value (vs ~0.25% pre-war), with single-VLCC additional cover at $6–10 million; the IMO, at its Nov 2–6 London session, still advises against transit and cannot confirm mines have been cleared from the traffic-separation scheme; JMIC holds the threat level at SEVERE, with roughly 490 vessels queued outside the strait in early November. Tehran has granted transit exemptions to commercial shipping from China, India, Iraq and Qatar, but no formal written notice has been issued to the IMO, and mine and strike hazards persist.

4. China refiners

As Iranian supply shrank, independent refiners have lifted October–November Basra Medium/Heavy and Qatar Al-Shaheen purchases to an estimated 15–20 million barrels (via Mercuria, Totsa and Trafigura, at delivered premiums of $12–20/bbl to ICE Brent); Iraqi crude has become the new Chinese teapot benchmark.

5. Compliance & practical note

Under sanctions-compliance red lines, SNSUC does not provide trading services for Iranian-origin crude.

The Iraqi Basra series (SOMO direct-signature eligible) is tradeable supply. Ahead of the January 2027 'Basra Medium' split, buyers should pin down the pricing-benchmark switch clause to avoid differential mismatches. Sources: SOMO official pricing notices, Jin10, Sina Finance, CCTV Finance, Xinhua Finance, public IEA data, UKMTO, IMO, Lloyd's JWC, Hamer Intel, Region Alert, Sinopec News.