Data Confirms Iraq's Pivotal Role In The Global Oil Market, 28 MARCH

 Data Confirms Iraq's Pivotal Role In The Global Oil Market

Buratha News Agency1412025-03-26  SOMO today explained the importance of Iraqi oil and its vital role in global markets, while indicating that Iraq has the fourth largest proven oil reserves in the world, at approximately 145 billion barrels. SOMO emphasized the advantages of Iraqi oil, explaining, 

“Global crude oils are classified and their quality is determined based on their API (specific gravity) and sulfur content. Iraqi crude oil produced on this basis is classified into (medium and heavy crude oil) based on its specific gravity. 

It has a high sulfur content for both types, according to the sulfur content standard. It is considered a crude oil with specifications (required globally), and is compatible with the operational plans of refineries that wish to produce specific products according to their needs.”

She explained that "among the advantages that help attract buyers are the significant and growing demand for medium and heavy crude oils, stable production, and the availability of large, stable quantities that ensure long-term supply contracts for these refineries. 

The geographic location and low shipping costs make Iraqi oil a favorite in the Asian market, in addition to the fair, competitive price based on market fundamentals."

The company continued, "Iraq ranks fifth in the world in terms of oil production, with an output of approximately 4.27 million barrels per day, making it the second-largest producer in OPEC after Saudi Arabia. Iraq also has the fourth-largest proven oil reserves in the world, at approximately 145 billion barrels."

She pointed out that "this ranking reflects Iraq's vital role in global oil markets, as it contributes significantly to meeting global energy demand. Marketing-wise, Iraqi crude oil is considered an important oil with a good market reputation, as it is relied upon by many global refineries in their refining operations and there is relatively high demand for it."

 She added, "Iraqi crude oil is in global demand for refineries in several countries, as Iraqi crude oil is exported exclusively to companies that own refineries, but most of the companies to which Iraqi crude oil is exported are Asian companies, the most important of which are China and India, at a rate of approximately 70%, and approximately 30% for the other two markets, European and American combined."

She also pointed out that "OPEC and OPEC+ policies determine production levels, which are reflected in global prices, impacting the buying and selling of Iraqi crude oil. The greater the production restrictions, the higher the prices and the lower the quantities sold, and vice versa. These policies also impact the market share and financial returns."   https://burathanews.com/arabic/economic/458057