Iraq sells crude oil to Jordan below official price, SOMO says
Shafaq News / Iraq's SOMO, the state-owned oil marketing company, has announced that the average price of crude oil exported to Jordan reached $58.70 per barrel during the month of June.
With this, Iraq sold each barrel of crude oil to Jordan last month at a price that was $12.41 lower than the official selling price declared by the Ministry of Oil, which stood at $71.11, according to statistics released by the ministry.
Statistics published by SOMO revealed that total oil exports to Jordan during June amounted to 299,445 barrels, indicating an average export rate of 10,000 barrels per day.
The Iraqi oil marketing company added that the selling price per barrel to Jordan was $58.70, highlighting that the value of oil export revenues to Jordan for the month amounted to approximately $18 million.
On March 28, 2023, the Iraqi Cabinet approved the recommendation of the Ministerial Energy Council to sign a new memorandum of understanding for crude oil supply between the Ministry of Oil and the Jordanian Ministry of Energy and Mineral Resources. The extension will be valid for one year, starting from the date of its implementation.
In September 2021, Jordan received shipments of oil under an agreement to purchase 10,000 barrels per day of crude oil from Kirkuk fields to meet part of the domestic demand. However, the agreement was halted in February 2022 due to the expiration of the contract, only to resume in April. It was then suspended again in August, and finally resumed in September last year.
It is worth noting that Iraq exports crude oil to Jordan at preferential prices through tanker trucks at an approximate rate of 10,000 barrels per day.
