Iraq cuts May Basra crude prices to all buyers

DUBAI (Reuters) - Iraq has cut the May official selling price for its Basra Light crude to buyers in Asia, Europe and the United States, an Iraqi oil official said on Sunday.

Prices to buyers in the United States were cut the most, down $1.75 on the month to a discount of $8.80 a barrel to the second-month futures contract for U.S. crude benchmark WTI.

Refiners in Europe saw the price fall $1 to a discount of $7.25 to North Sea spot crude marker BFOE.

Iraq cut the price of Basra Light crude to Asian buyers by 50 cents to a discount of $2.90 to the average of Oman/Dubai quotes, the official said.

The cuts reflected a widening spread on spot markets between light and medium crudes, the official said.

"This is the market reality," he said. "These are substantial reductions that reflects the price differences between the grades."

For its Kirkuk crude sold from the Turkish Mediterranean terminal of Ceyhan in May, Iraq cut prices to both U.S. and European buyers.

TU.S. buyers saw the price fall $1.65 on the month to a discount of $7.30 to first-month WTI. To European lifters, Iraq cut the price $1.20 to BFOE minus $5.90.

(Reporting by Simon Webb, editing by Will Waterman)