4th Consecutive Month of Growth Seen in Iraqi Oil Revenues

Iraq continues its impressive run of increasing oil revenues, with the country reporting over US$9 billion generated from oil sales in the month of October. This marks the fourth consecutive month of growth in oil revenue for the nation, as per the preliminary monthly report released by the Iraqi oil ministry.

According to the report, Iraq exported more than 109 million barrels of crude oil during the previous month, maintaining an average daily export rate of 3.5 million barrels. These exports were sold at an average price of US$88.2 per barrel, contributing to a total revenue of US$9.66 billion for October.

While this figure is slightly lower than September’s revenue of US$9.49 billion, it represents Iraq’s highest oil revenue since August 2022, when the country collected over US$9.68 billion.

For the year 2023, the Iraqi oil ministry has reported cumulative earnings of nearly US$80 billion from oil sales. This achievement comes on the heels of Iraq’s record-breaking US$115 billion in oil revenue generated in 2022.

Iraq’s commitment to adhering to the OPEC+ production cuts has played a pivotal role in shaping its oil production strategy. In April, Iraq announced a reduction of oil production by 211,000 barrels per day, which became effective in May and is slated to continue until the end of 2023. This reduction supplements the two million barrels per day cut that was already in place since November of the previous year.

It is essential to note that oil revenue serves as Iraq’s primary source of income, with the federal government relying heavily on these sales to cover its expenses and pay the salaries of civil servants. This sustained growth in oil revenue is seen as a positive sign for Iraq’s economic stability and growth prospects, despite the global fluctuations in oil prices and production cuts implemented to balance the market.