Tuesday, January 11, 2022

Iraq’s Oil Exports Up In December But Prices Dropped


In the second half of 2021 Iraq’s production quota under OPEC+ has increased to go along with the energy market recovering from the COVID shock of 2020. That has increased Iraq’s oil exports but revenues continue to fluctuate.

 

In December 2021 Iraq exported an average of 3.277 million barrels a day. That was slightly up from 3.272 in November. Overall, the country averaged 3.109 million barrels in 2021 compared to 2.996 in 2020.

 

The growth at the end of the year coincided with OPEC+ loosening its production quota on Iraq. That went from 4.193 million barrels a day in November to 4.237 in December. Iraq is also one of the biggest violators of the OPEC+ agreement so its actual output was higher.

 

Prices and profits were down at the end of the year however. Iraqi crude sold for $72 per barrel compared to $77.33 in November and an annual high of $79.27 in October. That brought in $7.375 billion in revenue in December.

 

For the year Iraq’s average price was $68.21 per barrel versus $38.80 in 2020. That helped profits nearly doubled as a result from $3.493 billion per month in 2020 to $6.302 billion in 2021.

 

This means Iraq’s financial crisis is over but no reforms will be carried out as a result. The government will go back to its excessive spending on government salaries and pensions even though they are not sustainable over the long term and divert money away from investing and expanding the economy.

 

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

$6.143

Jul

2.918

$72.00

$6.476

Aug

3.054

$69.01

$6.553

Sep

3.081

$73.32

$6.777

Oct

3.12

$79.27

$7.666

Nov

3.272

$77.33

$7.611

Dec

3.277

$72

$7.375

2021 Avgs

3.019

$68.21

$6.302

 

SOURCES

 

Iraq Oil Report, “Iraqi crude exports rise steadily through 2021,” 1/7/22

 

Saadi, Dania, “IRAQ DATA: December federal oil exports nearly steady despite higher OPEC+ quota,” S&P Global, 1/2/21

 

Xinhua, “Iraq’s crude exports exceed 101 mln barrels in Dec.: ministry,” 1/2/21

 

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