BAGHDAD: Exports of Iraq’s flagship Basra crude could touch a new high in February, as major oil producers defend market share over cutting output at a time when global crude prices have hit the lowest in more than a decade.
Global oil prices hovered just above $30 a barrel on Tuesday, down more than 70 percent since mid-2014, depressed by excess supply as producers pump at record levels to protect their market share.
OPEC kingpin Saudi Arabia maintained its output at above 10 million bpd for most of 2015, levels not seen since Reuters began publishing the data in 1997.
Iraq, the second largest producer in the Organization of Petroleum Exporting Countries, plans to export about 3.63 million barrels per day (bpd) from its southern oil terminals, trade sources said on Tuesday, citing a preliminary loading programme.
February’s preliminary volume, up 8 percent from this month, could exceed the record 3.365 million bpd exported in November.
Iraq’s state-run Oil Marketing Company, or SOMO, could not be immediately reached for comment.
The boost in Iraqi crude supply comes after SOMO signed new contracts to supply about 160,000 barrels per day more crude to India.
The deals reinforced Iraq’s status as the No.3 supplier to Asia and mark a win for the conflict-plagued nation that has made big efforts to boost oil output and generate much-needed revenue.
The rise in February exports is expected to be driven by Basra Heavy as supplies of the heavier grade could hit 959,000 bpd, the sources said, up from 750,000 bpd in January.
About 2.67 million bpd of Basra Light could be exported in February, levels similar to this month’s export, they said.
SOMO tends to allocate more crude that it can supply as it has insufficient storage space to hold excess oil if production exceeds exports.
