Iraqi Daily Crude Oil News

Iraqi Daily Crude Oil Exports Drop 3.7% in June.

The Oil Ministry reported that without providing a reason for the decrease, Iraq, possessor of the world’s third-biggest oil reserves, exported 3.7% less crude oil in June that it did just a month before in May.The ministry elaborated in an e-mail statement that after the drop, June exports amounted to approximately 1.82 million barrels a day, or 54.7 million barrels for the month, which compared unfavourably with the total May shipments of 1.89 million barrels a day, or 58.7 million barrels, it said.

Bad weather or rebel attacks have been the previous culprits that the Iraqi officials have blamed for any past declines in the country’s crude oil exports.On July 18 Falah al-Amri, the chief of Iraq’s Oil Marketing Co made a statement from Baghdad that crude exports for the month were likely to grow to more than 1.9 million barrels a day just before the ministry made its announcement. He stated that Iraq had not suffered any interruptions to its exports for that month. Al-Amri added that the country is expected to export about half of its July shipments to Asia.

According to the International Monetary Fund, crude exports accrued to 86% of Iraq’s total government revenue in 2008, and the country relies heavily on oil sales to provide financing for its reconstruction after enduring decades of conflict and economic sanctions.

Third Round

In order to help boost output at its oil fields, which have sustained a lack of investment and new technology, Iraq is constantly searching for investors from overseas. During two licensing rounds in 2009, the Iraqi government presented 10 contracts to international oil companies, and it continued to declare a third round of bidding this year in order to develop the country’s natural gas reserves. According to the statement, in June, income from oil exports decreased to $3.89 billion, with Iraq selling crude oil at an average price of $71.10 a barrel. At an average price of $73.85 a barrel, the country earned about $4.34 billion from oil shipments in May,

In June, Iraq exported 79 percent of its crude, or 43.2 million barrels priced at $3.07 billion, from the southern port of Basra. The remaining 11.5 million barrels were shipped from the northern oil hub of Kirkuk, fetching $815 million.In accordance with data compiled by Bloomberg, Iraq generates a total of about 2.4 million barrels of oil a day. The rise of crude exports in May came after a three-month decline that Oil Minister Hussain Al- Shahristani, also attributed primarily to bad weather and rebel aggression.

Chris Termeer