(Bloomberg) -- European refiners are having to pay bumper premiums for denser barrels from the Middle East following big price hikes for cargoes being shipped next month. 

Iraq set the official selling price of Basrah Medium crude to the region at the highest in more than a year for June, according to data compiled by Bloomberg. Saudi Arabia also raised pricing of heavier oil to Europe. That’s in contrast to Asia, where those Persian Gulf producers either kept costs stable or slashed them from a month earlier.

Europe has been facing more limited supplies of the so-called “medium sour” crude ever since it imposed sanctions on Russian shipments on Dec. 5. Flows from the OPEC+ producer — which was previously the European Union’s top supplier — have slumped, at the same time as the region faces a loss of barrels from the Mediterranean port of Ceyhan.

Exports from northern Iraq — known as Kurdish crude — have been halted since late March as Iraq and Turkey haven’t yet reached a deal on a payment dispute. A resolution would enable almost half a million barrels a day of oil similar to Russia’s to be shipped from Turkey. 

Crude like Russian Urals and Iraq’s Basrah Medium produce more oil products such as diesel and fuel oil. They’re usually heavily discounted compared to other types because of higher sulfur levels.

However, competition for Basrah intensified in Europe last month. About 23 million barrels of Iraqi crude are set to be imported into the region this month, up from 16 million barrels in April, according to Kpler data.

--With assistance from Sherry Su.

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