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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Iraq is considering "hedge" to cope with fluctuations in oil prices

    Rocky
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    Iraq is considering "hedge" to cope with fluctuations in oil prices Empty Iraq is considering "hedge" to cope with fluctuations in oil prices

    Post by Rocky Mon May 29, 2017 11:42 am

    Iraq is considering "hedge" to cope with fluctuations in oil prices


    Mon, 29 May 2017 10:29:00


    Falah Al Amiri, head of the Iraqi Oil Marketing Company (SOMO) said that his country might consider hedging part of its crude oil production as a means of protecting government revenues in the face of the risk of crude price volatility.

    Said Amiri, who is also Iraq's ambassador to the Organization of the Petroleum Exporting Countries (OPEC), in an interview with Reuters, "Among our strategy in the future we may examine hedge for a portion of Iraqi crude .. SOMO suggests the idea at the present time has not been studied yet."

    It is not clear who has the type of hedge studied by SOMO. Seeking some institutions, such as Pemex oil monopoly in Mexico, to ensure the sale of oil at a fixed price and content throughout the year, while others such as Shell and BP in sales against the volatility of oil prices in the short-term hedge.

    It helps hedge in the short term to reduce price fluctuations between the time of signing the sale of oil contracts for delivery time and payment of value.

    Amri said, "There are a lot of requirements that must be implemented first, a need to hedge the study of well-trained people and the need to know the best companies working in the hedge .. We still do not understand the hedging process completely."

    He added that it is not certain that Iraq will adopt hedging practices.

    Amiri also said that SOMO aims to use tools such as auctions and joint ventures to promote the interests of Iraq's oil and reduce the import of petroleum products.

    And it established Somo and Atasko Russian joint venture for trade in Dubai crude to market from joining it to other producers in the Middle East are buying and selling oil to boost their income.

    Last month, SOMO sold the first shipment of Basra light crude through bidding in the DME, which may become a platform for price discovery. Being the Omani crude market, which is sold in Asia at the Dubai Mercantile Exchange today.



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