Iraq’s Federal Oil Exports Nearly Steady in December Despite Higher OPEC+ Quota

Iraq's federal crude exports, excluding flows from the semi-autonomous Kurdistan region, rose marginally in December from a month earlier, the oil ministry said Jan. 1, despite a higher OPEC+ production quota. Federal exports in December reached 3.277 million b/d, compared with 3.273 million b/d in November, oil ministry data showed.

Iraq's quota under the supply accord between OPEC and its allies increased to 4.237 million b/d in December from 4.193 million b/d in November as members of the 23-member coalition continued to ease their production curbs by 400,000 b/d a month. The quota covers production, not exports. The ministry did not disclose volumes of internal crude consumption nor inventory changes. Iraq has a January quota of 4.281 million b/d.

Exports from central and southern Iraq fell 0.5% to 3.180 million b/d, while exports of Kirkuk crude through the Turkish port of Ceyhan rose 29% to 87,100 b/d, according to the ministry data. Iraq raked in December US$7.037 billion by selling its oil at an average price of over US$72/b, compared with US$7.610 billion earned in November by selling its oil at an average price of US$77.510/b.

The OPEC+ alliance is likely to approve another 400,000 b/d increase in output quotas for February when ministers meet again Jan. 4, delegates told S&P Global Platts previously. Convening every month, OPEC, Russia and several other allies have been gradually rolling back the record production cuts they instated when the market crashed in spring 2020, and hope to regain their pre-pandemic output levels by late 2022.