SOMO: Positive responses from foreign companies to increase Iraqi oil sales in Europe
Economie Yesterday, 12:26
Baghdad - conscious - Nassar al-Hajj
Today, Wednesday, the National Oil Marketing Company (SOMO) of the Ministry of Oil announced a
movement to increase Iraqi oil sales in the European market, while
indicating Iraq's ability to cover the needs of this market.
And the director of the company, Alaa Khader Al-Yasiri, told the Iraqi News Agency (INA), that
"SOMO has effective contracts for the supply of oil with European companies with a total quantity of about 600 thousand barrels per day of Basra Medium, Basra Heavy and Kirkuk crude oil," noting that
"these are Companies have a total liquidation capacity of about 60% of the total liquidation capacity in the continent of Europe.” He added that
"Sumo Company is constantly searching for available opportunities for marketing and approaching European companies that do not have contracts with them," noting that
"it has recently received a number of positive responses from some companies that may lead to new contracts and lead to an increase in Iraqi oil sales in the European market.". He pointed out that
"Iraq is able to cover the European market," noting that
"the current situation in this market requires companies to find suitable oils that are not subject to international sanctions, as Basra crude oil is one of those suitable oils." He added,
"The acidic average of Basra oil can feed European refineries, despite the difference in some quality specifications from the oils consumed in those refineries currently, which to some extent constitutes an obstacle to European buyers' complete dependence on Iraqi oil."
"In terms of the level of demand for crude oil in the European market, the total quantities received for this market of medium-sour oils reached the limits of (2.5) million barrels per day, and in light of the political tensions that afflict Europe, which may affect the supply of crude oil in the market."
The European Union may have a deficit of up to one million barrels per day of medium-sour crude oil, and
this is an opportunity for Iraqi oil away from the Asian market, as it is a promising market in the long term,
which achieves a greater return for the Iraqi round and ensures the stability of demand for Iraqi oils. Al-Yasiri pointed out that
"Iraq is committed to the decisions of the Organization of the Petroleum Exporting Countries, which always aims to strive for the stability of global oil markets and the balance of supply and demand," noting that
"any quantities that are allocated to a specific market are within the agreed production ceiling." And he indicated that
"the Oil Marketing Company adopts a mechanism for the official price announced for all markets in selling quantities of oil, and
this price is determined for each market and for each type of oil on a monthly basis according to the data and variables of the global oil markets, and
this is a continuous context in which to work."