Mechanisms of oil pricing through SOMO and its impact on Iraqi oil exports
DOI:
https://doi.org/10.25212/lfu.qzj.9.1.43الكلمات المفتاحية:
SOMO (State Organization for the Marketing of Oil), Oil pricing, Pricing mechanisms, fixed price contracts, term contracts.الملخص
This study aimed to investigate the mechanisms used by the Iraqi State Oil Marketing Organization (SOMO) to set prices for its oil exports and to understand the impact of these prices on the volume of Iraqi oil exports. In order to achieve these objectives, the study analyzed data on SOMO's pricing practices, market conditions, and oil export volumes over a specified period. The study found that the prices set by SOMO significantly affect the volume of Iraqi oil exports. Therefore, the research hypothesis was not fully proven as SOMO's pricing strategies were found to be influenced by various factors rather than a clear and consistent marketing strategy. The study provides insight into the intricate process of oil pricing in Iraq and proposes that SOMO should develop a consistent marketing strategy to promote the value of high-quality Iraqi oils in the global market. The most important proposals of the study include identifying the various pricing strategies employed by SOMO, examining the factors that influence these pricing strategies, and highlighting the significant impact of SOMO's pricing practices on the volume of Iraqi oil exports. This analysis provides insight into the intricate process of oil pricing in Iraq and the significance of SOMO's role in shaping the nation's oil exports, which could inform policy decisions related to energy policy, trade policy, and economic development.
التنزيلات
المراجع
Al-Dahhan, W. H., & Mahmood, S. M. (2019). Classification of Crude Oils and their Fractions based on Paraffinic, Naphthenic, and Aromatics. Al-Nahrain Journal of Science, 22(3), 35-42. https://www.iasj.net/iasj/download/d98040311a6e4c23
Tissot, B. P., & Welte, D. H. (1984). Classification of Crude Oils. In Petroleum Formation and Occurrence (pp. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-87813-8_21
Mohammadi, M., Khanmohammadi Khorrami, M., Vatanparast, H., Karimi, A., & Sadrara, M. (2022). Classification and Determination of Sulfur Content in Crude Oil Samples by Infrared Spectrometry. Infrared Physics & Technology, 127, 104382. https://doi.org/10.1016/j.infrared.2022.104382
Vignesh, V., Tiwari, M., & Khurana, A. (2019). Classification of Crude Oil and Its Characteristics, International Research Journal of Engineering and Technology, 6(4). https://www.irjet.net/archives/V6/i4/IRJET-V6I4753.pdf
Crude Oil Classification. (n.d.). Encyclopedia Britannica, Inc. Retrieved December 30, 2021, from https://www.britannica.com/science/crude-oil-classification
Crude Oil Classification and Types. (n.d.). Investopedia, LLC. Retrieved December 30, 2021, from https://www.investopedia.com/terms/c/crude-oil-classification.asp
Kamal, S. M., & Osei, J. A. (2007). Oil price discrimination and market power: Evidence from the international petroleum industry, Journal of Economic Studies.
Al-Mashhadani, M. A. (2019). The Impact of Oil Price Volatility on the Iraqi Economy, Journal of Economic Studies.
Crude Oil Benchmarks: Brent, WTI, Dubai/Oman, and More. (2021, January 15). Investopedia. https://www.investopedia.com/terms/c/crude-oil-benchmark.asp
Understanding Crude Oil and Product Markets. (2021, January 15). Energy Information Administration. https://www.eia.gov/energyexplained/index.php?page=crude_oil_and_product_markets
Crude Oil Pricing and Trading. (2020, December 15). International Association of Oil & Gas Producers. https://www.iogp.org/publications/crude-oil-pricing-and-trading/
Crude Oil Benchmarks: Differentials and Valuation. (2018, January 15). Oxford Institute for Energy Studies. https://www.oxfordenergy.org/publications/crude-oil-benchmarks-differentials-and-valuation/
Brent Crude. (2022, December 3). In Wikipedia. https://en.wikipedia.org/wiki/Brent_Crude
West Texas Intermediate. (2022, December 5). In Wikipedia. https://en.wikipedia.org/wiki/West_Texas_Intermediate
Dubai Crude. (2022, September 8). In Wikipedia. https://en.wikipedia.org/wiki/Dubai_Crude
Fattouh, B. (2006). Middle East Crude Pricing and the Oman Crude Oil Futures Contract: A Critical Assessment. Oxford Energy Comment. Oxford Institute for Energy Studies. https://www.oxfordenergy.org/wpcms/wp-content/uploads/2011/01/August2006-MiddleEastCrud-Pricing-BassamFattouh.pdf
Miljkovic, D., & Goetz, C. (2020). The effects of futures markets on oil spot price volatility in regional US markets. Applied Energy, 273, 115288. https://doi.org/10.1016/j.apenergy.2020.115288
State Organization for Marketing of Oil (SOMO). (n.d.). Retrieved from https://somo.iq/
"Crude Oil Properties and Characteristics" (American Petroleum Institute, 2020 https://www.api.org/oil-and-natural-gas/exploration-and-production/well-completion/crude-oil-properties-and-characteristics/
"Crude Oil Quality and Assay Information" (US Energy Information Administration, 2021 https://www.eia.gov/petroleum/crudeoilquality/assay/)
"The Characteristics and Classification of Crude Oil" (Society of Petroleum Engineers, 2020 https://www.spe.org/en/industry/crude-oil-characteristics/
"Classification of Crude Oil: A Review" (Journal of Petroleum and Gas Engineering, 2017 https://www.omicsonline.org/open-access/classification-of-crude-oil-a-review-2155-9872-1000295.pdf
"Crude Oil Classification: A Comparison of Different Methods" (Energy & Fuels, 2016) https://pubs.acs.org/doi/abs/10.1021/acs.energyfuels.6b01479
"Crude Oil Sampling, Analysis, and Quality Assurance" (American Society for Testing and Materials, 2017 https://www.astm.org/DATABASE.CART/HISTORICAL/D4057-17.htm
"Crude Oil Distillation and Characterization" (American Chemical Society, 2018) https://www.acs.org/content/acs/en/education/resources/highschool/chemmatters/past-issues/2018-2019-vol-19-issue-2/crude-oil-distillation-and-characterization.html
التنزيلات
منشور
كيفية الاقتباس
إصدار
القسم
الرخصة
هذا العمل مرخص بموجب Creative Commons Attribution 4.0 International License.
Qalaai Zanist Journal allows the author to retain the copyright in their articles. Articles are instead made available under a Creative Commons license to allow others to freely access, copy and use research provided the author is correctly attributed.
Creative Commons is a licensing scheme that allows authors to license their work so that others may re-use it without having to contact them for permission
