Thursday, July 8, 2021

Prices For Iraqi Oil Pass $70 Per Barrel For 1st Time In Over 2 Yrs


Iraq’s government revenues continued to rise in June 2021. That was due to prices passing $70 per barrel as the energy market continued to recover after COVID and the Russian-Saudi price war that sent petroleum into a tailspin last year.

 

Iraq exported an average of 2.892 million barrels a day in June. That was almost the same as May’s 2.899 million. The previous three months however the country was selling over 2.9 million barrels a month. Petroleum production has gone up and down each month which affects exports. Output is still far higher than it is supposed to be under OPEC+ quotas but Iraq has never followed them because it is the most oil dependent country in the world and needed to raise money while the energy market collapsed in 2020.

 

Now that oil is recovering Iraq is reaping the benefits. A barrel of its petroleum sold for $70.77 in June. That was the highest price since October 2018. Profits increased as well to $6.141 billion, the most since January 2020. The prime minister’s financial adviser said that Iraq no longer has to borrow and its huge budget deficit can now be covered due to rising oil prices. That is great news for Baghdad that passed the largest spending bill ever with a record deficit as well.

 

Federal Oil Exports, Prices, Revenues 2019-2021

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

$3.404

Dec

2.846

$47.76

$4.235

2020 Avgs

2.996

$38.80

$3.493

Jan 2021

2.868

$53.29

$4.765

Feb

2.96

$60.33

$5.013

Mar

2.946

$63.32

$5.787

Apr

2.947

$62.77

$5.549

May

2.899

$65.84

$5.917

Jun

2.892

$70.77

$6.141

 

SOURCES

 

Dourian, Kate, “Oil price recovery boosts Iraq’s June export earnings above $6 billion,” Iraq Oil Report, 7/2/21

 

Al Mada, “Governmental Adviser: The surplus of oil revenues will cover the deficit and cancel borrowing,” 5/25/21

 

Saadi, Dania, “IRAQ DATA: Federal oil exports hold steady at 2.89 million b/d in June,” S&P Global, 7/1/21

 

Xinhua, “Iraq’s crude oil exports exceed 86 mln barrels in June,” 7/1/21

 

 

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