In May 2016 Iraq’s oil revenue went up due to an increase in
price for its crude. This happened despite a dip in exports. International oil
prices have been going up in 2016 helping Iraq bring in much needed cash.
Unfortunately the country is still not earning enough for the government to
meet its minimum costs.
Last month Iraq exported
an average of 3.2 million barrels of oil per day. That was back to the levels
seen at the beginning of the year after the Oil Ministry reached a post-2003
high in April with 3.364 million barrels. As usual, oil sales fluctuate, and in
May there was some bad weather at Basra’s ports that stopped tankers from
docking and power outages that shut down infrastructure for a short period of
time. Still, so far in 2016 Iraq has averaged 3.271 million barrels a day,
above its 2015 mark of 3.003 million.
International oil markets have been trying to recover from a
glut in supply in 2016. Iraq has been helped by that trend even as it attempts
to produce as much petroleum as possible. Throughout the year prices for its
oil has steadily climbed form a low of $22.21 per barrel in January to May’s
$37.75, the highest price since October 2016’s $36.42.
The increase in prices meant the country took in its largest
monthly revenue in nine months. In May Iraq made $3.745 billion from its
exports. That still put the government in a whole as it needs an estimated
$4 billion just to pay for its payroll and pensions. This deficit has forced
Baghdad to go to the International Monetary Fund, other international
organizations and donors to ask for assistance as well as attempt to sell bonds
to raise money. Even if petroleum prices continue to rise as expected Iraq will
still need this financial assistance as it has been running in the red for
months now.
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
|
|
May
|
3.2
|
$37.75
|
$3.745
|
|
2016
Avg.
|
3.271
|
$28.84
|
$2.898
|
SOURCES
Chmaytelli, Maher, “Exclusive: Iraq plans $2 billion bond
sale end 2016 as aid lowers borrowing costs,” Reuters, 6/3/16
Lando, Ben and Osgood, Patrick, “Oil revenues rise despite
export dip,” Iraq Oil Report, 6/1/16
No comments:
Post a Comment