Tuesday, September 6, 2022

Iraq's Oil Exports And Revenue Decline In August 2022


When Russia invaded Ukraine setting off a spike in world petroleum prices Iraq was riding high. As the most oil dependent country in the world Iraq welcomed the boom because it had been suffering an economic crisis since 2020 when COVID and a dispute between Russia and Saudi Arabia led to a plummet in the market. Baghdad’s hopes for a better future look to be short lived as prices are declining ever so slightly month to month.

 

In August a barrel of Iraqi crude sold for an average of $96.05 per barrel. Prices reached a high of $113.70 in June but have gone down since then. Earlier in the year Iraq’s Oil Minister said that prices would remain over $100 a barrel per month for the rest of the year but that only lasted for five months.

 

The country’s exports also dipped in August going from 3.303 million barrels a day in July to 3.286 million in August. For 2022 Iraq’s sales have been between 3.2-3.3 million barrels a month.

 

The result of the dual decline in prices and exports meant Iraq’s revenue went down as well. In July it made $10.6 billion, but $9.784 billion in August. In January and February Iraq made over $8 billion a month. Then the Ukraine war led to $10 billion in profits in March, April and July and $11 billion in May and June.

 

Even though overall income remains high Iraq is not benefiting from it. There is no new Iraqi government as the ruling parties are stuck in a never-ending deadlock. That means there is no new budget and Baghdad is unable to spend all this new money that’s coming in.

 

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

3.373

$113.70

$11.505

Jul

3.303

$103.60

$10.6

Aug

3.286

$96.05

$9.784

 

SOURCES

 

Sotaliraq, “Iraq exported about $10 billion in oil last August,” 9/2/22

 

Xinhua, “Iraq exports over 100 mln barrels of crude oil in Aug.,” 9/2/22

 

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