Dubai Mercantile Exchange hosted its latest auction on Wednesday, on behalf of Iraq’s National Oil Company, SOMO.

The 2-million barrel cargo of Basrah Heavy was awarded at a premium of $1.37 per barrel over the September Basrah Heavy Official Selling Price (OSP).  28 companies logged into the auction with 17 active bidders and more than 25 bids during the two-minute auction. Over 50 companies have now registered with DME to access SOMO auctions.

SOMO has sold a total of 10 million barrels of crude oil via DME Auctions since April of this year. In June, a Basrah Heavy cargo for August loading was auctioned at a premium of $1.18 per barrel. The stronger premium for the September-loading cargo reflects the anticipated tighter market for heavy crude oil later in the year, with OPEC cuts expected to reduce availability in the spot market.