Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices for its Basra Light and Kirkuk crude grades for January.

In common with some other countries, Iraq’s oil is priced relative to regional benchmark prices:

• For shipments to US, contracts are priced are relative to the Argus Sour Crude Index (ASCI);
• Shipments to Europe are priced relative the North Sea Spot BFOE; and
• Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.

The new prices to Europe are as follows:

• Kirkuk crude to Europe will sell at a discount of $0.70 a barrel relative to the North Sea (Dated Brent) benchmark, up 65 cents from December;
• Basra Light to Europe will sell at a discount of $2.50 a barrel to Dated Brent, an increase of 65 cents.

And to the US:

• Basrah Light will sell at a $1.50 discount to the U.S. benchmark, up 10 cents from December
• Kirkuk will sell at a premium of 15 cents, up 5 cents.

To Asia:

• Basrah Light to Asia will sell at a premium of $2.90 above the benchmark, up from a premium of $1.80 in December.

(Sources: Reuters)

Azzaman news agency reports that the Iraqi Central Bank’s budget forecast for 2012 is based on and oil price of $80 per barrel.

Muatasem Akram, a consultant with the bank, said the forecast was reasonable, though much below the 2012 forecasts for oil prices on international markets.

He acknowledged the bank’s budgetary estimates for oil earnings were relatively low and may lead to a revenue deficit, but said it was better to adopt predictions that were easy to achieve rather than basing the country’s budget on forecasts that may not come true.

“We expect the 2012 deficit to be met by additional exports and firmer oil prices,” he said.

More than 90% of Iraq’s hard cash earnings are generated by oil exports.

Akram said the budget was based on an average export level of 2.6 million barrels a day.

He said the Central Bank adopted what it believed to be a low export figure to ensure that the development plans in the budget were achievable.

The Central Bank, he said, was aware of assurances by the Ministry of Oil of a substantial hike in oil exports in 2012.

But he said given OPEC forecasts that world oil consumption will remain stable in 2012, the bank settled on the current oil production rates and export figures.

(Source: Azzaman)

Global oil prices below $90 a barrel would be “difficult” to accept, Iraq’s Deputy Prime Minister for energy, Hussain al-Shahristani, told Reuters on Wednesday.

Brent crude oil dipped below $100 a barrel on Tuesday on growing concern about a Greek debt default and the health of the global economy, tumbling from a 2011 peak of $127 in April.

(Source: Reuters)

Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices for its Basra Light and Kirkuk crude grades for October.

In common with some other countries, Iraq’s oil is priced relative to regional benchmark prices:

• For shipments to US, contracts are priced are relative to the Argus Sour Crude Index (ASCI);
• Shipments to Europe are priced relative the North Sea Spot BFOE; and
• Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.

The new prices to Europe are as follows:

• Kirkuk crude to Europe will sell at a discount of $1.45 a barrel relative to the North Sea (Dated Brent) benchmark, up 130 cents from September;
• Basra Light to Europe will sell at a discount of $3.00 a barrel to Dated Brent, an increase of 105 cents.

And to the US:

• Basrah Light will sell at a $1.70 discount to the U.S. benchmark, up 15 cents from September
• Kirkuk will sell at a premium of 10 cents, down 10 cents.

To Asia:

• Basrah Light to Asia will sell at a premium of 5 cents above the benchmark, up from a discount of $1 in September.

(Sources: Dow Jones)

Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices on Sunday for its Basra Light and Kirkuk crude grades for August.

In common with some other countries, Iraq’s oil is priced relative to regional benchmark prices:

• For shipments to US, contracts are priced are relative to the Argus Sour Crude Index (ASCI);
• Shipments to Europe are priced relative the North Sea Spot BFOE; and
• Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.

The new prices to Europe are as follows:

• Kirkuk crude to Europe will sell at a discount of $2.75 a barrel relative to the North Sea (Dated Brent) benchmark, up 80 cents from July;
• Basra Light to Europe will sell at a discount of $4.55 a barrel to Dated Brent, an increase of 70 cents.

And to the US:

• Basrah Light will sell at a $1.75 discount to the U.S. benchmark, up 25 cents from July
• Kirkuk will sell at the benchmark, as it did in July.

To Asia:

• Basrah Light to Asia will continue to sell at the benchmark.

(Sources: Dow Jones)

Iraq’s State Oil Marketing Organisation (SOMO) has adjusted its official selling prices on Sunday for its Basra Light and Kirkuk crude grades for July.

In common with some other countries, Iraq’s oil is priced relative to regional benchmark prices:

• For shipments to US, contracts are priced are relative to the Argus Sour Crude Index (ASCI);
• Shipments to Europe are priced relative the North Sea Spot BFOE; and
• Asian shipmentas are priced relative to the Dubai-Oman crude benchmark, published by Platts, the energy-information division of McGraw-Hill.

The new prices to Europe are as follows:

• Kirkuk crude to Europe will sell at a discount of $3.55 a barrel relative to the North Sea (Dated Brent) benchmark, up $1.20 from March;
• Basra Light to Europe will sell at a discount of $5.25 a barrel to Dated Brent, an increase of $1.80.

And to the US:

• Basrah Light will sell at a $2.00 discount to the U.S. benchmark, up 10 cents from June;
• Kirkuk will sell at the benchmark, an drop of 25 cents.

To Asia:

• Basrah Light to Asia will sell at the benchmark, an increase of 5 cents.

(Sources: Bloomberg)

The increase in world crude oil prices this year will add $8 billion [9.6 trillion Iraqi dinars] to the Iraqi budget, the Secretary-General of Iraq’s Council of Ministers said.

Ali al-Allaq (pictured) told al-Sabah Newspaper in Baghdad on Tuesday that  the increase would result in additional allocations to for the implementation of projects.

He added that the Iraqi government “expects the increase to be more than the above figure, which would contribute to the implementation of additional service projects in the whole country.”

The budget is based on an average oil price of $76.50 per barrel, and 2.2 million barrels per day in crude exports.

(Source: Aswat al-Iraq)

With political and social upheaval, first in Tunisia and now in Egypt, the big question on many minds at the moment is to what extent the unrest will spread to other countries in the Arab world.

But despite the undoubted poverty in Iraq, it is rarely mentioned as possible candidate for a popular uprising, and the reason is that Iraq has a functioning democratic system, painfully slow and imperfect though it may be. The people of Iraq have had the chance to express their opinions at the ballot box.

The turmoil is clearly having an impact on Iraq in another way: the price of oil. Hitting $102 on Wednesday, crude oil is up 7% in the past week, and is well above the $73 per barrel on which the country’s 2011 budget is based.

A spokesman for Iraq’s Ministry of Oil confirmed that the Egyptian situation would not restrict Iraq’s output and export of oil, and if that continues to be the case, Iraq may stand to benefit significantly from these developments.

Upper Quartile and AAIB work closely with businesses in the energy and infrastructure sectors. To see how they can assist your business in Iraq, please contact Gavin Jones or Adrian Shaw.