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| (AFP/Getty Images) |
Iraq saw diminishing returns from its oil exports in the second half of 2019 as oil prices dropped due to a glut in the market. Due to war fears over Iran however, profits were back up in December. At the end of the year however, Iraq finished with higher export figures, but lower revenues.
Iraq’s oil exports were down in December, but threat of a
U.S.-Iran war lifted prices. Iraq exported an average of 3.428
million barrels a day at the end of the year, which was down from 3.5
million the month before. An average barrel of Iraqi crude however went for
$63.05 the highest amount since May’s $66.68. That led revenues to increase
from $6.282 billion in November to $6.7 billion in December. That was the
highest figure since the country earned $7.329 billion, also in May. Iraq’s oil
sales had been down since reaching an annual high of 3.603 million barrels a
month in August because that was in violation of a production quota set by
OPEC. Iraq has been trying to follow that agreement since then by cutting
output at state run oil fields. Baghdad has never followed the organization’s
attempts to cut production and raise prices because the government hopes to
become the largest producer within the group surpassing Saudi Arabia, and its
budget is almost wholly dependent upon petroleum.
The country finished the year with higher exports levels,
but lower profits. For 2019, Ira averaged 3.527 million barrels of oil per
month. That was the highest level ever for the country, and exceeded 2018’s
3.498 million. Again, this was largely accomplished by flaunting OPEC limits.
Despite that prices dropped for most of the year despite hope that there would
be a recovery in the first half of 2019. In January, prices started at $56.15
per barrel, rising to a high of $67.41 in April. After that prices fell almost
every month hitting a low of $57.15 in October before rising at the end of 2019
due to tensions with Iran. Iraq finished averaging $61.09 per barrel down from
2018’s $65.61. Likewise revenues dropped from $6.953 billion per month in 2018
to $6.543 billion in 2019. The lower profits will hurt the government that has
little budgetary control. It consistently raises spending, mostly going to more
public sector jobs which are handed out as part of patronage networks by the
ruling parties, and only cuts back when oil prices crash as they always do.
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
|
$6.321
|
Oct
|
3.447
|
$57.15
|
$6.107
|
Nov
|
3.5
|
$59.82
|
$6.282
|
Dec
|
3.428
|
$63.05
|
$6.7
|
2019 Totals
|
3.527
|
$61.09
|
$6.543
|
SOURCES
Lando, Ben, “December exports fall, but revenues rise on
strong oil price,” Iraq Oil Report, 1/3/20
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