WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Alt Text

Refiners Boost Output, But Irma Could Dent Demand

Refining margins and crude spreads…

Alt Text

Have Oil Markets Reached A Turning Point?

Oil prices hit their highest…

Alt Text

Aramco Valuation Comes Under Scrutiny

Saudi Aramco’s valuation is coming…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Iraq Agrees With Deal Extension, But Boosts Oil Exports To Record Levels

Iraq Oil

Iraq’s May export figures show the Middle Eastern nation reaching for the sky to dominate the Asian oil supply game, according to new shipping data analyzed by Bloomberg.

Sixty-two million barrels of crude left Iraqi ports in vessels over the first half of this month. At this rate, the country will clock in a 4.14 million bpd export rate – a sizeable increase from the 3.252 million bpd rate it reached in April.

Production restrictions from the Organization of Petroleum Exporting Countries (OPEC) dictate that the country should limit its production to 4.351 million barrels per day, but exports for bloc members remain unbound. Iraqi Oil Minister Jabbar al-Luaibi announced yesterday that his country backs efforts to extend the limits through March 2018.

Iraq’s compliance to its production target was always going to be a moving target as the country was reluctant to limit production in the first place,” Edward Bell, a commodities analyst at the UAE-based bank Emirates NBD, told Bloomberg. “The higher Iraqi volumes shows one of the flaws of the deal: the focus on production rather than exports.”

A large share of the new exports is likely reaching Asia. India imported more than 1 million bpd from Iraq last month, which made OPEC’s second-largest producer the top crude supplier to the fast growing Asian economy, data from Thomson Reuters showed earlier today. Previously, Saudi Arabia was the largest oil exporter to India.

Related: Oil Prices Set To Rise On Back Of OPEC Deal Extension

India preferred Iraq overtook the latter’s larger neighbor because of Basra Heavy’s cheaper price and its physical properties, which are “good for refineries with coker units…[and] good for conventional refiners that make bitumen as that is in demand in India,” according to the chairman of Hindustan Petroleum Corp., M. K. Surana.

Riyadh has cut export prices for Asia since news of emerging Iraqi dominance broke.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News