Tuesday, July 5, 2022

Iraq Reaches New High In Oil Revenue In June 2022


Iraq continues to benefit from the disruption in the energy market caused by the war in Ukraine. That led to record profits in June. As the most oil dependent country in the world this should be good news but the country is hamstrung by the lack of a new government and budget.

 

Oil exports have remained steady for Iraq over the last eight months. In June the country exported an average of 3.37 million barrels a day. Since November it has been shipping between 3.2-3.3 million barrels a day.

 

Before Iraq’s sales were constrained by an OPEC+ production quota but that has increased. The nation hasn’t been able to take advantage of that however because of its poor infrastructure. As Iraq Oil Report noted the pipelines in Basra which carry the majority of its petroleum to market are leaking and in need of repair. That means its production can’t go up by much because the pipes can’t handle it. This is a problem that has plagued Iraq for years and been a major constraint upon its oil industry.

 

Despite that Iraq hit new highs in June. A barrel of crude went for $113.70 the highest amount since 2014. That earned it $11.5 billion another high since 1972.

 

Baghdad isn’t able to spend this wealth however because it lacks a new government. It’s been nine months since elections but the ruling parties are no closer to picking a prime minister. In June an emergency spending bill was passed for $17 billion but there is a lot more in the coffers. Without a new government a budget can’t be passed and these oil funds spent.

 

Federal Oil Exports, Prices, Revenues 2019-2022

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 Avg

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 Avg

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

$72.80

$7.391

2021 Avg

3.019

$68.33

$6.303

Jan 2022

3.203

$83.82

$8.323

Feb

3.314

$92.08

$8.544

Mar

3.244

$110.09

$10.913

Apr

3.38

$104.09

$10.554

May

3.3

$111.79

$11.44

Jun

3.37

$113.70

$11.5

 

SOURCES

 

Dourian, Kate, “Iraq exports dip but revenues hit new record,” Iraq Oil Report,” 6/8/22

 

NRT, “Iraqi Parliament Passes Emergency Draft Law On Food Security,” 6/8/22

 

Xinhua, “Iraq exports 101 mln barrels of crude oil in June,” 7/2/22

 

 

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