Tuesday, April 4, 2023

Iraq’s Oil Industry Has Stabilized After Drop In Prices


Iraq’s oil industry has stabilized after the energy market cooled off following the Russian invasion of Ukraine. Exports and prices have been at the same rate for the last 3-4 months.


In March exported an average of 3.255 million barrels a day. Since January exports have been at 3.2 million per month.

 

Prices have been in the same situation. In March a barrel of Iraqi crude went for $73.37. Iraqi oil has been going for around $70 for the last four months. It was in the $80 range from September to November, $96 in August and going for over a $100 per barrel from March to July.

 

Likewise revenues have been at $7 billion per month since December. In March Iraq earned $7.4 billion, $7.081 billion in February because the month had fewer days, $7.663 billion in January and $7.709 billion in December.

 

OPEC+ is trying to stabilize prices by asking for member countries to cut back production. Iraq said it would comply but it never has in the past. That’s because it is the most oil dependent country in the world and always wants to sell as much oil as it possibly can. The problem is its aging infrastructure won’t allow for much more. It’s therefore at the whim of the international market which always goes up and down.

 

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

$75.69

$7.663

Feb

3.295

$76.75

$7.081

Mar

3.255

$73.37

$7.4

 

SOURCES

 

Reuters, “Iraq’s oil exports at 3.25 man bpd in March -oil ministry,” 4/1/23

 

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