Iraq's oil competition expands with Saudi Arabia

in (next February), more than the reduction made by Saudi Arabia, as is shown by the list of monthly prices for Iraq.

The cuts made by Iraq to Europe was not a surprise, as analysts and the market were expecting Iraq to follow what has been done by Saudi Arabia during the same month.

As for the Asian markets Iraq has raised the selling prices on its customers there in a similar move to what Riyadh, but Iraq will continue to sell its oil to Asia in February at more competitive prices from Saudi Arabia as well.

The Iraqi Oil Marketing Company "SOMO" in the list of prices for February said that it has increased the reduction of Basra Light crude to Europe by $ 1.6 per barrel, compared to prices in current January, while will raise oil prices of Kirkuk, about $ 1.9 per barrel during the same period.

Based on these reduction, Iraq will sell Basra crude in February contracts to Europe at the price of Brent crude minus $ 5.95 a barrel, after it used to sell it in January by the current price of Brent minus $ 4.35 a barrel.

"Saudi Aramco" said last week that it has increased deductions on the official selling price of crude in February to northwest Europe from $ 1.50 to $ 1.70, so that each buyer Arab light crude in Europe will get the oil price Brent less $ 4.65 a barrel, the lowest level since 2009.

"SOMO" List rates have showed that Asian prices increased by 30 cents, or $ 0.3 per barrel in February compared to January, bringing Asian clients on   Basra Light crude at a price equal to the average price of Dubai and Amman minus $ 3.70 a barrel.

Iraq’s budget which is facing a considerable financial pressure this year, with the decline in oil prices is seeking to increase its oil exports after the return of Kirkuk field to production and the conclusion of an agreement in principle between Kurdistan region and Baghdad government that will allow for about 300 thousand barrels of Kirkuk oil to pass through the region to the port of Ceyhan in Turkey .