Iraq experienced a large drop in the price for its crude in
August 2015. That resulted in a $1 billion decrease in its revenue. On top of
all that its exports dipped a bit as well. That means the country will continue
to face budgetary and deficit problems into the foreseeable future.
In August Iraq exported an average of 3.079
million barrels a day. That was down from July’s 3.104 million, June 3.187
million, and May’s 3.145 million. The main cause was the breakdown in the
budget deal between Baghdad and Irbil. Under that agreement the Kurds were to
export oil for the central government and in return receive its 17% of the
national budget. During the summer it broke down as both sides accused each
other of not fulfilling their obligations. Last month the Kurds actually
appeared to raise their foreign sales from around 41,000 barrels a day in July
to approximately 50,900 in August.
Still, Basra shipments were down from 3.064 million in July to 3.021 million in
August causing the overall decline.
The bigger issue was the fact that oil prices fell around
20%. From April to July Iraqi crude was going for over $50 per barrel such as
in July when it went for $50.99. In August however, it only sold for $40.59.
That caused revenues to drop from $4.908 billion in July to $3.874 billion in
August. That puts added pressure upon the budget as the government has failed
to reach any of the export or revenue marks set in that document. It’s estimated
that the country has a $21.4
billion deficit, which has led it to borrow $1.7 billion from the World
Bank and $833 million from the International Monetary Fund. It needs far more
money however, and Baghdad had plans to float $7 billion in bonds as well.
Iraq Oil Exports & Revenues
2014-15
|
Month
|
Avg.
Exports
|
Avg. Price
Per Barrel
|
Earnings
(Bil)
|
|
Jan. 14
|
2.228
|
$102.37
|
$7.074
|
|
Feb
|
2.799
|
$102.05
|
$8.001
|
|
Mar
|
2.396
|
$101.03
|
$7.507
|
|
Apr
|
2.509
|
$100.69
|
$7.582
|
|
May
|
2.582
|
$100.69
|
$8.077
|
|
Jun
|
2.423
|
$102.96
|
$7.470
|
|
Jul
|
2.442
|
$102.27
|
$7.742
|
|
Aug
|
2.375
|
$97.44
|
$7.172
|
|
Sep
|
2.542
|
$90.76
|
$6.916
|
|
Oct
|
2.432
|
$81.12
|
$6.120
|
|
Nov
|
2.51
|
$70.40
|
$5.25
|
|
Dec
|
2.941
|
$56.59
|
$5.161
|
|
2014 Avg.
|
2.51
|
$92.39
|
$7.013
|
|
Jan
|
2.535
|
$41.45
|
$3.258
|
|
Feb
|
2.597
|
$47.43
|
$3.449
|
|
Mar
|
2.98
|
$48.24
|
$4.457
|
|
Apr
|
3.077
|
$51.70
|
$4.8
|
|
May
|
3.145
|
$55.87
|
$5.447
|
|
Jun
|
3.187
|
$55.32
|
$5.289
|
|
Jul
|
3.104
|
$50.99
|
$4.908
|
|
Aug
|
3.079
|
$40.59
|
$3.874
|
2015 Oil Exports From Basra
Jan 2.39
mil/bar/day
Feb 2.29
mil/bar/day
Mar 2.71
mil/bar/day
Apr 2.62
mil/bar/day
May 2.69
mil/bar/day
Jun 3.022
mil/bar/day
Jul 3.064
mil/bar/day
Aug 3.021
mil/bar/day
2015 Oil Exports By Kurds
Jan 153,000
bar/day
Feb 306,000
bar/day
Mar 268,000
bar/day
Apr 450,000
bar/day
May 451,000
bar/day
Jun 164,733
bar/day
Jul 41,000
bar/day
Aug 50,900
bar/day
SOURCES
eKurd, “Iraqi Kurdistan News in brief – September 4, 2015,”
9/4/15
Lando, Ben, Osgood, Patrick, “Oil exports and revenues drop
in August,” Iraq Oil Report, 9/1/15
Salaheddin, Sinan, “Iraq’s economy, beaten by Islamic State
war and low oil prices, struggle amid rising protests,” Associated Press,
8/18/15
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