Energy expert: SOMO will not be subject to US sanctions, and oil prices will remain above $60.
Energy expert: SOMO will not be subject to US sanctions, and oil prices will remain above $60.
2025/09/04
Energy expert Nabil al-Marsoumi confirmed that the Iraqi State Oil Marketing Organization (SOMO) will not be subject to US sanctions, indicating that what the company may face will be no more than the freezing of some assets, while oil prices will remain stable above the $60 per barrel barrier.
During his appearance on the “Free Talk” program on Al Furat TV, Al Marsoumi said, “The US Treasury Department has taken photos of smuggled oil tankers for the second time; however, SOMO has nothing to do with this issue.” He pointed out that “black oil smuggling is proven due to the large gap between the government-subsidized price for brick and asphalt factories and the global price.”
He stressed that “SOMO’s deals are limited to solid companies and oil refineries known for their accurate financial and oil metrics,” noting that “the US Treasury accused Walid al-Samarrai of mixing Iraqi and Iranian oil and selling it as Iraqi with forged papers, a story SOMO categorically denies.”
Al-Marsoumi added that “most of the black oil smuggled by sea goes to the Al-Rawz refinery in the UAE, while there are about 400 tankers smuggled from the Kurdistan region stuck on the Afghan border that the US Treasury has not addressed.”
He pointed out that “Iraq exports around 12 million tons annually through SOMO, with revenues ranging between 3 and 4 trillion dollars, and that the threat of imposing sanctions is a pressure card to push the oil agencies and the government to limit oil smuggling.” He considered that “any actual sanctions on SOMO will lead to the absence of 8% of oil from the global market, which will cause a major shock and a sharp rise in prices, which is something that even contradicts the policy of US President Donald Trump, who always seeks to lower oil prices.”
Al-Marsoumi pointed out that “Iraq’s production quota currently stands at 4.2 million barrels per day, but that it is 150,000 barrels less due to postponed cuts. Nevertheless, the country’s exports increased last July,” stressing that “all indicators show that oil prices will not fall below $60 per barrel.”
He added, “The US interest in Iraq is strategic due to China’s growing economic influence, at a time when American companies have begun withdrawing from Iraqi fields, citing widespread corruption in the oil sector.” He explained that, during their meeting with Prime Minister Mohammed Shia al-Sudani, these companies raised three key contract clauses: cohesion, security, and business conduct.
Al-Marsoumi pointed out that “corruption in Iraq has crossed all boundaries, especially in ministries with large contracts, which forces foreign companies to demand high additional costs to protect their investments.”
Concluding his remarks, the expert emphasized that “Iraq’s economic future depends on the energy sector,” calling for “developing oil exports and the gas industry to boost revenues,” emphasizing that “Iraq’s production quota must not be less than 6 million barrels per day.”
alforatnews.iq
