In numbers: Iraq's oil revenues in 8 months and a plan to increase exports to Europe

Investigations and reports
  • 6-09-2022, 22:44
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    The Oil Marketing Company "SOMO" counted the revenues from oil sales during the past eight months, and while it indicated that it plans to increase exports to European markets, it presented its expectations regarding oil prices for the next year.
    The Director General of the National Oil Marketing Company "SOMO" Alaa Al-Yasiri told the Iraqi News Agency (INA), that "the financial revenues generated from oil sales until the end of August amounted to about 82 billion dollars," noting that "the rise in prices contributed significantly to increasing the revenue generated.
    He added, "The average revenue in the past months was about 11 billion dollars per month. In August, the revenue was 10 billion and 200 million dollars due to the low price, which in the month of June was 112 dollars per barrel and in July it was about 101 dollars per barrel and in August it was 96 dollars." He pointed out that "the decline is due to many reasons, the most important of which is the inflation in the global economy and, as well as the closures that are taking place in China."
    European market
    And on the European desire to buy Iraqi oil, Al-Yasiri explained, “Iraq is present in the European market, through contracting with major companies that own refineries in Europe, but its ratio of sold crude oil is approximately (17-15%), explaining that “the focus is Currently, it is the largest on the Asian market for many reasons, including being a promising market that consumes more crude oil and in order to achieve high revenues.”
    He pointed out that "the plan that we have for the remainder of this year and the coming year includes increasing the quantities destined for the European market, as all the company's customers in Europe were approached and we explained to them that any company has the desire to increase its quantities, we are able to do so."
    Al-Yasiri indicated that "the aim is not to give up or leave the Asian market, but rather because the Asian market has intense competition because of Russian oil, which entered strongly and at low prices compared to what other countries have, which left a void in the European market, and therefore the revenue generated in this market became better, so we directed to increase our quantities in this market," noting that "since the beginning of the Russian-Ukrainian crisis, we expected the European market not to buy Russian crude, as well as Russia would direct its quantities towards Asia, and this is what actually happened."
    OPEC decisions
    Regarding OPEC’s decision to reduce production, Al-Yasiri pointed out that “the decisions taken in OPEC aim to serve the interests of the members of the organization, including Iraq, and it was an optional decisions that do not have an obligation on its members. In 2020, the price of crude oil was very low due to the presence of problems in the global economy as well as the closures in most countries as a result of the outbreak of the epidemic, which affected the suspension of air, sea and land transport all of this affected the demand for crude oil in the market, the price becomes very low, as the OPEC countries went towards balancing supply and demand, which is what we need at the present time.”
    He continued, "If there is any inflation or stagnation in the global market, there may be a new agreement for OPEC, especially if the quantity supplied is greater than the required," noting that "Iraq is supportive of the options that are in its interest, the options of the organization in all cases are in the interest of Iraq, which It is the second largest producer of crude oil in OPEC.
    Al-Yasiri stressed that "the decisions that are taken affect positively and negatively on Iraq, as it is one of the largest producers, but in general the decisions that are taken do not pass without the approval of Iraq first," noting that "if Iraq wants not to abide by the OPEC decision, it is not committed, and the commitment is voluntary and not obligatory, because all that is taken is It is in the interest of the producers.
    Optimistic hypothesis
    Regarding the expectations of oil prices in the future, Al-Yasiri said, “The major specialized institutions in the world have three expectations because oil prices are very sensitive and affected by many factors.
     Any event in a region in which oil tankers move before it occurs directly affects prices, because the issue of expectations is difficult to understand, but usually the hypothesis is adopted. now we have the optimistic hypothesis about the events that are taking place in the world, which says that there will be a Russian-Ukrainian agreement at the end and the return of Russian crude to the market, and there is also an agreement between Iran and the West on the nuclear file, consequently, Iranian crude will return to the market, and these assumptions are very optimistic."
    “In the event that what was expected occurs, the price will be very low due to the pumping of large quantities into the markets, as for the second expectation, there are those who see that the situation will be the next year as it is, and here the prices will not exceed 110 dollars per barrel, as for the third expectation, it is believed that crises will have an escalation that could raise oil prices to nearly or more than $130 per barrel. He said.