For the third month in a row .. Iraqi crude exports continue to decline

For the third month in a row .. Iraqi crude exports continue to decline



Oil worker in southern Iraq
 
24/03/2018

Economy News Baghdad:

Oil exports in southern Iraq fell by 70,000 barrels per day this month, indicating OPEC's second-largest producer is heading towards exporting less crude shipments for a third straight month.

According to Reuters data, and independent monitoring of a source in the sector, exports of southern Iraq averaged 3.36 million barrels per day (bpd) in the first 21 days of March compared to 3.43 million bpd in February.

The decline is signaled by the continued absence of signs of additional supplies reaching the market from Iraq despite oil prices this year rising to $ 71 a barrel for the first time since 2014, supported by an OPEC-led cut in production.

Iraq is "committed to the agreement of the Organization," according to the source, which tracks Iraq's exports, "We expect less," while a shipping agent explained that shipments from southern Iraq decreased because of one of the loading platforms of individual tankers for maintenance during part of March by a leak, Loads also decreased in the smaller Khor al-Amaya port.

Iraq is increasing exports from southern ports, where most of the exports come from, to offset shipments from Kirkuk's northern fields in October after Iraqi forces took control of the fields from Kurdish fighters.

According to navigational data and a source in the sector, the average exports of the North 270 thousand barrels per day since the beginning of the month to date compared to an estimated 340 thousand barrels per day last month, well below levels that exceeded 500 thousand barrels per day in some months of 2017. Iraqi officials say there are no plans to resume oil flow through a Kurdish-owned pipeline with no deal yet. North exports could increase if Baghdad moves ahead with a plan to export Kirkuk oil by truck to Iran, but this has been delayed. Based on the loadings since the beginning of the month so far, total March exports averaged 3.63 million bpd, down from 3.77 million bpd in February, 3.81 million bpd in January and 3.84 million bpd Barrels per day in December, according to figures from Iraq and loading data.

Southern shipments registered a record level in December, and Iraq showed a lower level of commitment to the supply agreement than its OPEC counterparts, such as Saudi Arabia and Kuwait, for much of 2017, but a fall in Kirkuk production boosted compliance by Iraq and the overall participants.

A joint committee estimated that OPEC and independent producers' commitment to an oil production cut was at a record high last month and stockpiles were shrinking at a rapid pace, making producers close to the original goal.

OPEC and its allies have made commitments to cut output by 138 per cent last month, up from 133 per cent in January, the highest level of commitment. The agreement, launched in January, 2017 to absorb the glut of global supply in the markets. "

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