Iraq’s SOMO seeks more high-sulphur diesel deliveries for Dec, sources say

Iraq’s state-owned refiner SOMO is seeking to buy more high-sulphur diesel deliveries for December arrival, after earlier buying interest for one October cargo, three trade sources who saw the tender document said on Friday.

SOMO is seeking a total of 85,000 metric tons of 2500ppm sulphur diesel, to be split into two 42,500-ton cargoes, for delivery between Dec. 1 and Dec. 31 to Khor Al Zubair, they said.

The tender closes on Nov. 5, with validity of up to 20 days later.

SOMO did not immediately respond to a Reuters request for comment.

This is the second time the refiner has looked to buy 2500ppm sulphur diesel cargoes, after a purchase tender at end-September for one October 42,500-ton cargo.

In May, the company sought to sell 800-1000ppm gasoil term supplies.

This rise in demand could be due to lowered domestic production because of refinery maintenance, one of the three sources said.

SOMO did not import or export any gasoil for the first half of 2024, while imports for 2023 totalled around 1.15 million tons, the company’s website shows.

Iraq’s newly minted Karbala refinery was shut for scheduled maintenance at end-September and has just restarted.

At least four more refinery sites in Iraq were scheduled for planned maintenance between September and November, a fourth source told Reuters earlier.
Source: Reuters (Reporting by Trixie Yap; editing by Jason Neely)