Iraq has reportedly cut Basra medium and heavy crude prices to attract demand, sources say

The tell is the grade mix: medium and heavy sour barrels compete directly with Russian and other sanctioned supply into Asian refiners, so discounting them points to competition for that specific demand pool rather than a broad read on light sweet balances. Iraqi pricing has also at times been set with an eye on the regional benchmark setter, and episodes where Baghdad undercuts its larger neighbour have preceded wider rounds of OSP reductions across the Gulf, a sequence worth watching in the next monthly pricing announcements. Compliance context matters here as well, since Iraq has a track record of producing above its allocation, and price cuts are consistent with placing incremental barrels rather than defending price. The channels to watch are the sour crude differentials, the Brent-Dubai spread, and refinery margin signals from Asia, which is where discounted Basra barrels would first clear.