Oil Marketing Company: Plan to maximize the value of Iraqi oil through market diversification
Oil Marketing Company: Plan to maximize the value of Iraqi oil through market diversification
2026-01-21
The State Oil Marketing Company (SOMO) announced on Wednesday a plan to maximize the value of Iraqi oil by diversifying markets, while indicating that it has adopted a flexible and well-thought-out system for export movement in line with the global market. The company’s Director General, Ali Nizar Al-Shatri, told the official agency that “the State Oil Marketing Company relies on an integrated system of accurate data that includes export levels, shipping flows, and supply and demand trends in the main markets, which allows for flexible and well-thought-out planning for export movement in line with global market conditions in coordination with the Organization of OPEC.”
He added that “the company coordinates through regular official and technical channels with member countries, including data exchange, participation in technical meetings and specialized committees, and continuous communication about market developments and emerging challenges,” stressing that “coordination ensures a collective commitment to agreed policies and enhances trust among producing countries, which positively impacts the balance of supply and demand and the stability of the global oil market.”
He also explained that “the role of the Oil Marketing Company is not limited to the commercial aspect only, but extends to contributing to achieving market stability and protecting Iraq’s interests within an international system that relies on cooperation and coordination to achieve common goals that serve both producers and consumers.” He continued, “The Oil Marketing Company prepares daily, weekly, and monthly reports that monitor the market situation in terms of supply and demand and geopolitical developments. In light of these studies, decisions are made that contribute to the success of the marketing process, taking into account the organization’s goals in achieving stability in the global market.” He pointed out that “the Oil Marketing Company faces a fundamental challenge, which is achieving a delicate balance between the requirements of the national economy in terms of oil revenues, and the collective responsibility of Iraq as an active member of the OPEC+ alliance to maintain the stability of the global market.”
He also pointed out that “the Iraqi economy relies heavily on oil revenues to finance the general budget, support basic services, and implement development projects, which imposes continuous pressure to maximize returns,” adding that “any ill-considered increase in oil supply could lead to downward pressure on prices, which would negatively affect total revenues even if exported quantities increased.”
He added that “the company faces challenges related to fluctuations in global demand, geopolitical conditions, and changes in energy policies of consuming countries, in addition to the need to maintain Iraq’s reliability as a committed partner within the alliance,” noting that “commitment to quotas and voluntary reductions is not seen as a burden, but rather as a strategic tool and investment to ensure market stability in the medium and long term, achieving more sustainable returns compared to short-term gains, thus serving the interests of Iraq and producing and consuming countries alike.”
Al-Shukri also affirmed that “the Oil Marketing Company is working in coordination with the Ministry of Oil and the relevant authorities to maximize the value of Iraqi oil by diversifying markets, improving marketing conditions, and raising the efficiency of operations, in order to ensure the best possible revenue within the agreed ceilings, and in a way that serves the interest of Iraq and the stability of the global oil market at the same time.”
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