Iraq Oil Exports to Drop

Iraq plans to export 3.163 million barrels per day of Basra crude from its southern ports in December, slightly lower than in this month, five sources with knowledge of the matter said on Monday. The allocated December volume will be the lowest in four months, although Iraq exported more than what it had planned in October, seeking to be exempt from OPEC's plan to limit supplies, Reuters reported. Basra Light crude exports in December are set to edge up to 2.437 million bpd, the sources said, citing a preliminary loading program from Iraq's Oil Marketing Company. Basra Heavy exports are expected to fall to 726,000 bpd in December, from 900,000 bpd in November, they said. Last week, Iraq raised the December prices for both grades to Asia, setting Basra Light at the narrowest discount to Saudi's Arab Medium crude since October 2012. The price hikes may cool demand and cap premiums for December-loading Basra Light spot cargoes, traders said. Some buyers may also choose to buy in January when prices are expected to fall, they said.