Iraq’s Oil Exports Dip in May-June

Iraq’s oil exports dipped to one of their lowest levels of just over 500,000 barrels per day (bpd) during May and June as OPEC’s second largest crude producer remained shut off global markets with the continued closure of Hormuz Straits.

The exports fetched the Arab nation just around US$2.3 billion, a fraction of its oil revenues before the six-week Iran war erupted on 28 February.

Iraq’s total crude exports during these two months were around 32 million barrels, an average 530,000 bpd, according to the oil ministry.

The exports included around 20 million barrels from the southern oilfields through Basra ports and over 10 million barrels via the Northern Kirkuk-Ceyhan pipeline into Turkey.

“Revenues from oil exports during these two months totalled around US$2.33 billion,” the ministry said, citing a report by the State Organisation for Marketing Oil (SOMO).

Iraq, which controls the world’s fifth largest proven crude resources, pumped more than 4 million bpd before the eruption of the conflict between Iran and the US-Israeli alliance.

In January, crude exports fetched Iraq around US$6.5 billion, the ministry reported early this year, adding that oil exports through Hormuz stood at nearly 3.47 million bpd.

“This is one of the lowest levels of Iraq’s oil exports in modern history given its heavy reliance on Hormuz for such exports,” said Walid Khaddouri, an Iraqi energy analyst.

Somo’s director general Ali Al-Shatri said in June that Iraq has drawn up a plan to boost oil exports from its southern oilfields away from Hormuz.

He said the state-owned North Oil Company (NOC) is producing around 390,000 bpd from oilfields in central and north Iraq while around 170,000-180,000 bpd is being exported via the Kirkuk-Ceyhan pipeline.