Wednesday, May 11, 2016

Iraq Reaches New Post-03 High In Oil Exports While Prices Rise


In April 2016 Iraq achieved a new high in its monthly oil exports. That corresponded with the highest prices for its crude and profits for the year. That gave hope to Baghdad that the international oil market was recovering and that it could look forward to higher revenues in the coming months. Unfortunately the country was still not making enough to pay its bills.

Last month Iraq had its highest monthly oil exports since the 2003 invasion. It averaged 3.364 million barrels a day in April. That surpassed the previous high in November 2015 when the country had 3.363 million in exports. The April figures raised the yearly average to 3.289 million barrels, which was above 2015’s mark of 3.003 million barrels.

Oil prices hit a new annual high as well. In April a barrel of Iraqi crude sold for $33.25. In the previous three months prices were in the $20 range. That earned the country $3.343 billion for the month, again the highest amount in 2016, and the most since it made $3.66 billion in November. Despite those increases Iraq is still below its 2015 marks when it averaged $44.81 per barrel for the year and made $4.094 billion per month. The country needs around $50 per barrel each month to meet its costs. As of now it is facing a large budget deficit and using its foreign reserves to cover its bills. The export and price increase were welcomed, but were still not enough.

Iraq Oil Exports & Revenues 2015-16
Month
Avg.
Exports
Avg. Price
Per Barrel
Earnings
(Bil)
Jan
2.535
$41.45
$3.258
Feb
2.597
$47.43
$3.449
Mar
2.980
$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
$3.925
Sep
3.052
$40.32
$3.725
Oct
2.703
$39.56
$3.29
Nov
3.363
$36.42
$3.66
Dec
3.215
$29.84
$2.92
2015 Avg.
3.003
$44.81
$4.094
Jan
3.285
$22.21
$2.262
Feb
3.224
$23
$2.249
Mar
3.286
$28
$2.894
Apr
3.364
$33.25
$3.343
2016 Avg.
3.289
$26.61
$2.687

SOURCES

Al Ansary, Khalid Dipaola, Anthony, “Iraq oil Exports Near Record as Baghdad Protests Intensify,” Bloomberg, 5/1/16

Lando, Ben, “Exports and revenue rebound in April,” 5/3/16

Shafaq News, “Iraq says oil exports, revenues increase in April,” 5/1/16


No comments: