From S&P Global Commodities, May 31:
Highlights
SOMO sees opportunity to replace Urals in Europe
But Indian, Chinese contracts still key, official says
Iraqi export capacity constrained by Gulf infrastructureIraq's state oil marketer SOMO has approached French traders about the possibility of supplying Europe with crude, its director general said May 31, as the EU seeks to implement a ban on Russian seaborne imports.
SOMO still aims to maintain its key supply contracts with Indian and Chinese state customers, who have signed long-term contracts, and Iraq cannot afford to lose those clients, Alaa al-Yasiri told the Iraqi parliament's oil, gas and natural resources committee, according to a statement from the legislative body.
Iraq is targeting refineries globally to process its crude, Yasiri said, which would provide OPEC's second biggest producer with opportunity to benefit from Europe's search for alternative supplies from Russia, the largest source of the bloc's oil.
Europe received 15% of Iraq's crude exports in 2021, or 439,000 b/d, according to commodity intelligence company Kpler.
More recent volumes were slightly lower, with 390,000 b/d in May, or 12% of Iraqi exports....
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