Iraq’s oil exports fell by 11% in June

Oil tankers seen at the Al-Basra Oil Terminal in Iraq [Samuel W. Shavers/Wikipedia]

Iraq’s oil exports fell by 11 per cent in June, compared with the previous month, due to the country’s commitment to the OPEC+ agreement to reduce production.

The Iraqi Ministry of Oil announced on Wednesday that it exported 2.8 million barrels per day last June, with financial revenues reaching $2.86 billion. Exports declined from nearly 3.2 million barrels per day in May, with revenues reaching $2 billion. The rise of revenues in June comes despite a drop in exports, given the recovery of oil prices in global markets, after losing more than 50 per cent of their value in recent months due to the coronavirus crisis.

The Ministry of Oil’s Spokesman Assem Jihad announced in a statement that the preliminary statistics of the State Organisation for Marketing of Oil (SOMO) indicate that the total exports in June amounted to 84,490,194 barrels. Jihad added that the exports achieved financial revenues amounting to $2,861,140,000, at an average price per barrel of $33.8.

The decline of Iraq’s oil exports comes in response to an agreement between oil producers to reduce supplies to support prices. In April, the OPEC+ alliance reached a historic agreement to reduce oil production by 9.7 million barrels per day, with the aim of rebalancing crude oil prices in global markets. Before Iraq began reducing its production around three months ago, its exports ranged between 3.3 and 3.5 million barrels per day.

Source: Middle East Monitor