Monday, February 13, 2023

Iraq’s Oil Exports Dip In Jan Leading To Drop In Revenue


In January Iraq
exported an average of 3.266 million barrels of oil per day. That was the lowest amount since March 2022 when the country exported 3.244 million barrels. Last year Iraq averaged between 3.2-3.3 million barrels so January’s figure was within that range.

 

Prices actually went up for Iraqi crude from $73.64 per barrel in December to $75.96 in January. That was still far below last year’s average of $95.76. Prices spiked when Russia invaded Ukraine but that has leveled off.

 

The result was that Iraq earned $7.69 billion in January. That was down from December’s $7.709 billion and far below 2022’s average of $9.63 billion per month.

 

Oil prices at the start of last year filled Iraq’s coffers with foreign exchange. The new government is eager to spend it by vastly increasing the number of public employees which are used for patronage and theft by the ruling parties. However, Baghdad just increased the value of the dinar against the dollar. Iraq is paid in dollars for its oil so the revaluation will cut into how many dinars Baghdad has to spend. The political parties seem unconcerned. All they know is that oil prices have gone up so they can spend until the oil market drops again and Iraq is thrown into another economic crisis.

 

Federal Oil Exports, Prices, Revenues 2020-2022

Month

Avg Export (Mil)

Avg Price

Earnings (Bil)

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

$10.608

Aug

3.286

$96.05

$9.784

Sep

3.292

$89.56

$8.845

Oct

3.382

$88.31

$9.258

Nov

3.329

$82.41

$8.23

Dec

3.332

$73.64

$7.709

2022 Avg

3.311

$95.76

$9.63

Jan

3.266

$75.96

$7.69

 

SOURCES

 

Dourian, Kate, “January oil exports dip as Iraq begins year of OPEC constraints,” Iraq Oil Report, 2/8/23

 

Lucente, Adam, “Iraq lowers dollar-dinar exchange rate,” Al Monitor, 2/7/23

 

Al Masalah, “Iraq’s oil revenues exceed $7 billion in January,” 2/1/23

 

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