Iraq’s oil exports declined for a second month in a row in
June 2016. Ironically, prices continued to rise leading to an increase in
revenue. Unfortunately the country was still not able to earn enough to meet
its minimum budget requirements.
In June Iraq exported an
average of 3.175 million barrels a day. That was down from May’s 3.2 million,
and April’s 3.363, and was the lowest amount of the year. The Oil Ministry said
the decrease was due to more production being diverted to generators to produce
electricity during the summer heat.
Despite the drop in sales, Iraq was able to bring in more
money. That was due to oil prices finally breaking the $40 amount. The last
time that happened was in September 2015 when a barrel of Iraqi crude went for
$40.32. In June 2016 it sold for $40.37.
That earned the government $3.845 billion the highest amount of 2016, and the
most since August 2015.
Unfortunately Iraq needs to earn at least $4 billion a month
just to cover salaries and pensions let alone pay for the war, rebuilding and
investments. In 2016 the nation has only been averaging $3 billion a month in
earnings. In 2015 things were only slightly better when it averaged $4 billion,
and only made that amount four out of twelve months. That has led Baghdad to
raid its foreign reserves and go into debt to cover its costs. That means even
if Iraq were to make $4 billion in the next month or two it would still be in a
huge hole.
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
|
3.287
|
$28
|
$2.894
|
|
Apr
|
3.363
|
$33.25
|
$3.368
|
|
May
|
3.200
|
$37.75
|
$3.748
|
|
Jun
|
3.175
|
$40.37
|
$3.845
|
|
2016
Avg.
|
3.255
|
$30.76
|
$3.061
|
SOURCES
Lando, Ben, “Oil price keeps rising, covering export
slippage again,” Iraq Oil Report, 7/1/16
Reuters, “Iraq’s June oil exports fall as domestic usage
rises,” 7/1/16
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