Iraq's oil exports in June fell by 12.7% to 2.8 million barrels per day (bpd) from 3.21 million bpd in May, the oil ministry said on Wednesday based on data from the Iraqi State Petroleum Marketing Company (SOMO).
Exports from the country’s southern Basra terminals averaged 2.7 million bpd decreasing by 200 thousand bpd from May's official southern export figures.
The country gained $2.86 billion based on an average price per barrel of $33.90 in June, up from $2.13 billion in May with an average oil price of $21.45.
OPEC+ countries agreed on June 6 to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices to double in the past two months by withdrawing almost 10% of global supplies from the market.
Under the OPEC+ deal, Iraq is cutting output by 1.06 million bpd with an obligation to compensate for their overproduction in May and June in later months, but the figures for both months are still above the OPEC+ target.
It pumped 4.19 million bpd of crude oil in May, including production from the Kurdish Regional Government, and exported 3.63 million bpd, according to SOMO. However, this figure is more than 600 thousand bpd above its target output level in May.
Iraq, which relies on oil revenues for 95% of its budgetary income, has trouble repaying international oil companies that develop major oil fields in the southern part of the country.
According to Moody’s, Iraq is one of the most vulnerable oil producers in this price crash and could see its fiscal revenues and exports drop in 2020 by more than 10% of gross domestic product.
By Busranur Begcecanli