Tuesday, January 5, 2021

Iraq’s Oil Exports and Revenues Both Up In December


Petroleum prices have steadily increased since the summer thanks in part to production quotas implemented by the OPEC+ group. That was good news for Iraq which is the most oil dependent country in the world. The result was that in December Iraq had the highest revenues in 10 months.

 

In December Iraq’s oil exports increased again as the country continued to flaunt its OPEC limit. The country exported an average of 2.846 million barrels a day up from 2.709 million barrels in November. The increase was due to the Oil Ministry raising production starting in November by around 100,000 barrels a day to help boost profits for the government which depends upon petroleum for over 90% of its money. Production in November was at 3.93 million barrels a day up from 3.82 million in October and 3.68 million in September. It was supposed to produce 3.804 million barrels according to OPEC.

 

The rise in production came at a good time because petroleum prices were up. In December a barrel of Iraqi crude sold for $47.76 per barrel the highest price since February. That meant it earned $4.213 billion, again the highest figure since February. This was more good news for Iraq. It’s draft 2021 budget is based upon a $42 per barrel price so it might earn more money than estimated. That would help the deficit which is currently at $49 billion the highest ever.

 

For the year Iraq ended up making an average of $3.493 billion a month in petroleum revenue down from $6.543 billion in 2019. The government needs around $5 billion just for government salaries and pensions each month. That will go up under the 2021 budget that has added more workers and is the largest budget ever. Prices for Iraqi oil averaged $38.80 per barrel down from $61.09 last year.

 

Federal Oil Exports, Prices, Revenues 2019-2020

Month

Avg Export (Mil)

Avg Price

Earnings (Bil)

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

$6.121

Nov

3.5

$59.82

$6.305

Dec

3.428

$63.05

$6.698

2019 Avgs

3.527

$61.09

$6.543

Jan 2020

3.306

$60.14

$6.163

Feb

3.391

$51.37

$5.053

Mar

3.391

$32.73

$2.962

Apr

3.438

$13.80

$1.51

May

3.212

$21.00

$2.136

Jun

2.816

$33.86

$2.871

Jul

2.763

$40.70

$3.492

Aug

2.597

$43.69

$3.492

Sep

2.613

$40.40

$3.173

Oct

2.876

$38.48

$3.457

Nov

2.709

$41.77

$3.395

Dec

2.846

$47.76

$4.213

2020 Avgs

2.996

$38.80

$3.493

 

SOURCES

 

AIN, “Oil announces its exports and revenues for the past month,” 1/1/21

 

Arraf, Jane, “Iraq, Struggling to Pay Debts and Salaries, Plunges Into Economic Crisis,” New York Times, 1/4/21

 

Iraq Oil Report, “Facing financial crunch, Iraq boosts November production,” 12/22/20

 

Al Mirbad, “Oil Ministry announces preliminary statistics of exported quantities and revenues last December,” 1/1/21

 

Sirwan, Dilan, “Iraq faces 71 trillion dinar budget deficit in 2021: parliamentary finance committee member,” Rudaw, 12/31/20

 

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