 |
| (AFP) |
In August 2019, Iraq produced a record level of oil, which violated its quota set by OPEC. Due to complains from that organization, Iraq reduced its output in September, leading to a drop in exports, which also cut into revenues, despite an increase in prices.
In September, Iraq
exported an average of 3.576 million barrels a day. That was down from 3.603 million
barrels in August. The cause was Oil Minister Ghadban ordered state owned fields in Basra to reduce
production due to complaints from OPEC that Iraq was once again violating its quota. Several times the Organization
has attempted to get its members to reduce production to try to raise prices
after they collapsed in 2014. Baghdad has never followed those agreements,
hoping to expand its industry and share of the market. Whatever cut the Oil
Minister demanded, Iraq is likely still not to be in full compliance.
Prices rose for
Iraqi oil in September due to tensions with Iran, but profits were down. A
barrel of Iraqi crude sold for $59.14, up from $57.41 in August. That’s still
below the yearly average of $61.46. That resulted in revenues going from $6.413
billion in August to $6.345 billion in September. Both were below the 2019
average of $6.603 billion per month. Despite the immediate situation in the
Persian Gulf there is a glut in production, and worries about a coming world
recession that are depreciating prices for petroleum. If the value of Iraqi
crude continues to decline that will mean problems for the budget. Baghdad is
horrible at financial planning, greatly increasing its spending when oil
increases, failing to save for when the market will inevitably drop, and then
falling into deficits and debt when it does.
Federal Oil
Exports, Prices, Revenues 2014-2019
|
Month
|
Avg Export (Mil)
|
Avg Price
|
Earnings (Bil)
|
|
2014
Totals
|
2.517
|
$92.39
|
$7.017
|
|
2015
Totals
|
3.003
|
$44.81
|
$4.094
|
|
2016
Totals
|
3.302
|
-
|
$3.625
|
|
Jan 2017
|
3.321
|
-
|
$5.002
|
|
Feb
|
3.270
|
-
|
$4.514
|
|
Mar
|
3.258
|
$47.18
|
$4.766
|
|
Apr
|
3.253
|
$47.27
|
$4.607
|
|
May
|
3.261
|
$47
|
$4.623
|
|
Jun
|
3.273
|
$42.07
|
$4.144
|
|
Jul
|
3.230
|
$43.80
|
$4.386
|
|
Aug
|
3.216
|
-
|
$4.608
|
|
Sep
|
3.24
|
-
|
$4.882
|
|
Oct
|
3.346
|
$52.59
|
$5.456
|
|
Nov
|
3.502
|
$59.19
|
$6.021
|
|
Dec
|
3.535
|
$59.35
|
$6.504
|
|
2017
Totals
|
3.309
|
-
|
$4.959
|
|
Jan 2018
|
3.490
|
$63.29
|
$6.847
|
|
Feb
|
3.426
|
$60.14
|
$5.770
|
|
Mar
|
3.453
|
$59.95
|
$6.418
|
|
Apr
|
3.340
|
$64.60
|
$6.502
|
|
May
|
3.489
|
$69.80
|
$7.551
|
|
Jun
|
3.521
|
$69.32
|
$7.323
|
|
Jul
|
3.544
|
$69.16
|
$7.532
|
|
Aug
|
3.583
|
$69.65
|
$7.735
|
|
Sep
|
3.56
|
$74.15
|
$7.919
|
|
Oct
|
3.478
|
$73.38
|
$7.908
|
|
Nov
|
3.377
|
$61.09
|
$6.195
|
|
Dec
|
3.726
|
$52.80
|
$6.234
|
|
2018
Totals
|
3.498
|
$65.61
|
$6.953
|
|
Jan 2019
|
3.649
|
$56.15
|
$6.367
|
|
Feb
|
3.621
|
$60.83
|
$6.179
|
|
Mar
|
3.377
|
$63.80
|
$6.709
|
|
Apr
|
3.466
|
$67.41
|
$7.021
|
|
May
|
3.572
|
$66.68
|
$7.329
|
|
Jun
|
3.52
|
$60.58
|
$6.372
|
|
Jul
|
3.566
|
$61.15
|
$6.692
|
|
Aug
|
3.603
|
$57.41
|
$6.413
|
|
Sep
|
3.576
|
$59.14
|
$6.345
|
|
2019 Totals
|
3.55
|
$61.46
|
$6.603
|
SOURCES
Lando, Ben,
“Nationwide oil exports dip in September,” Iraq Oil report, 10/2/19
Reuters, “UPDATE
1-Iraq oil exports fell to 3.576 mln bpd in September – oil ministry,” 10/1/19
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