Iraq's state oil marketer is offering buyers discounts of as much as $37 per barrel below regional benchmarks for October contract cargoes.

This steep price cut reflects the tougher shipping difficulties Iraq faces compared with some of its neighbors during the Middle East conflict, largely because of its greater distance from the Strait of Hormuz.

Lacking a large fleet of its own, Baghdad has been forced to use deep discounts to motivate buyers, keeping crude exports flowing even as shipping through the Persian Gulf remains risky.

The state oil marketing organization priced Basrah Medium crude at $34.50 per barrel below the benchmark, and Basrah Heavy at a $37 discount, with the specific benchmark depending on the export destination.

The document, dated September 29, covers loading arrangements from October 1 to October 31.