SOMO clarifies the crude oil pricing mechanism between the center and the region

Economy

15-02-2022, 14:19

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Baghdad-INA

The Oil Marketing Company (Somo) clarified the mechanism for pricing crude oils and the agreement between the center and the region, while it announced its plan for the year 2022 regarding exports .

The company's general manager, Alaa Khader Al-Yasiri, told the Iraqi News Agency (INA): "The global oil market witnessed a rise in global oil prices in the past period, for several reasons, including geopolitical reasons related to the tensions witnessed in several regions of the world, and technical others related to the impact of production for some The oil-exporting countries, in addition to reasons related to the weather and many other reasons, affected the volume of global oil supply and its decline, in front of the increase in demand after recovering from the effects of the Corona pandemic .

He added that "the Oil Marketing Company, when pricing Iraqi crude oils, takes into account many criteria and considerations that ensure that the official selling price of Iraqi crude oils is a fair price that guarantees the highest financial return for the country and at the same time maintains the competitiveness of Iraqi crude oils among the oils that come to the market." All three (Asia, Europe, and America), relying on careful analysis of the market situation and the balances of supply and demand .

He added, "The Ministry of Oil, through the Oil Marketing Company, has worked to increase its export plan for 2022 by increasing the contractual quantities based on the export plan submitted by the production companies in the ministry for the quantities available for export," explaining that "the issue of raising export capacity is not limited to high prices. Oil or not, but rather depends on the availability of export infrastructure, the absorptive capacity of loading ports and storage capacity, in addition to other logistical factors, which Iraq is working to develop through the implementation of the plans drawn up by the Ministry, to raise the country’s export capacity during the coming period, in addition to adhering to the policy of The Organization of Petroleum Exporting Countries and its allies (OPEC +) towards global market changes in a way that ensures the preservation of Iraq's current quotas in the three major markets and seeks to raise them whenever the opportunity arises .