Monday 18 February 2019

Iraq's crude oil production is getting back on track.

Iraq's crude production rises to 4.632m bpd in July

BAGHDAD, August 4, 2016

Iraq's crude oil production in July rose to the highest level since January, as the country's supply slowly gets back on track despite low oil prices and a conflict with Islamic State militants.

The Opec member pumped 4.632 million barrels of crude oil per day in July compared with 4.559 million bpd in June, state-run Oil Marketing Company (SOMO) said in a statement on Thursday.

Iraq produced 4.775 million bpd in January, official data showed.

Oil exports from the country's southern ports rose to 3.2 million bpd on average in July, up from 3.175 million bpd in June, officials said on Monday, despite a pipeline leak that restrained southern exports.

Iraqi officials and oil analysts expect further growth in the country's exports this year, although at a slower rate than in 2015 when the country provided the biggest rise in supply from the Organization of the Petroleum Exporting Countries.

Foreign oil companies working in Iraq have warned that projects to boost output will be delayed if Baghdad cuts spending due to low oil prices and fighting with Islamic State.

Supply from Opec rose to 33.41 million bpd in July from a revised 33.31 million bpd in June, according to a Reuters survey.

July's production reported by SOMO was higher than Iraq's estimated output in the survey which was at around 4.32 million bpd.

Separately, Gulf Opec member Kuwait has kept its production steady in July, pumping 2.950 million bpd, an industry source told Reuters.

Supply has risen since Opec abandoned in 2014 its historic role of cutting supply to prop up prices as major producers Saudi Arabia, Iraq and Iran pump more.

The increase in Opec production has added to downward pressure on prices. Oil has fallen from a 2016 high near $53 a barrel in June to $43 on Thursday, pressured also by concern about weaker demand.

This year, Iran was Opec's fastest-growing source of supply as it recovers from Western sanctions.  - Reuters

Tags: Iraq | production | Crude oil |

More Energy, Oil & Gas Stories

calendarCalendar of Events