The State Oil Marketing Organization (SOMO) emphasized Iraq’s crucial role in global oil markets on Wednesday, highlighting the country’s standing as the fourth-largest oil reserve holder in the world, with approximately 145 billion barrels of proven reserves
SOMO explained that Iraqi crude oil is marketed in key global markets, including Asia, Europe, the United States, and Africa. The organization uses international forums, conferences, and online platforms to connect with global buyers, offering opportunities for companies to participate in spot cargo auctions. This strategy has helped establish long-term relationships with many international companies, ensuring a stable demand for Iraqi oil.
Regarding the quality of Iraqi oil, SOMO noted that it is classified as medium and heavy crude due to its high sulfur content and API gravity. These types are highly sought after for refineries focused on specific products. Despite the higher sulfur content, the growing demand for medium and heavy crude, along with Iraq’s stable production, makes it a preferred option for many refineries. Iraq’s geographical location and low shipping costs make it particularly attractive to Asian markets.
SOMO also highlighted Iraq’s significant position in global oil production. Ranking fifth globally, Iraq produces around 4.27 million barrels per day, making it the second-largest producer in OPEC after Saudi Arabia. This production capacity underscores Iraq’s importance in meeting global energy demand.
Iraqi oil is predominantly exported to Asian countries, particularly China and India, which account for about 70% of Iraq’s oil exports. Europe and the United States combined take up approximately 30%. SOMO maintains transparency and clarity in its dealings with international companies, focusing on medium- and long-term contracts to secure optimal returns for Iraq.
The company also exports refined products such as naphtha, fuel oil, jet fuel, and sulfur. SOMO acknowledged that while global oil prices are driven by supply and demand, production costs and investment factors can influence Iraq’s profit margins and its overall competitiveness in the market.
With its vast reserves, stable production, and competitive pricing, Iraq remains a vital supplier in the global oil market, and SOMO continues to implement strategies to maintain its prominence.