BAGHDAD: Iraq’s oil exports are set to rise slightly in October, according to loading data and an industry source, a sign OPEC’s deal to limit supplies has yet to restrain shipments from the group’s second-largest producer. Iraq and the rest of the Organization of the Petroleum Exporting Countries agreed last month their first deal to restrain output in eight years to boost prices. But Iraq on Sunday called for Baghdad to be exempt, adding to the list of members seeking special treatment.
Exports from southern Iraq in the first 25 days of October averaged 3.31 million barrels per day (bpd), according to shipping data tracked by Reuters and an industry source. That’s up from Iraq’s own figure of 3.276 million bpd last month. “Exports are very strong,” said the industry source, who tracks tanker shipments. The south pumps most of Iraq’s oil. Iraq also exports smaller amounts of crude from the north by pipeline to Turkey.
Northern shipments of crude from fields in the semi-autonomous Kurdistan region have averaged 580,000 bpd in October, according to loading data and the industry source. These exports averaged 595,000 bpd in September. So far, Iraq’s crude exports amount to 3.89 million bpd in October. If sustained, this would be up 20,000 bpd from September’s total exports, according to figures given by Iraqi officials at a briefing on Sunday.
Oil prices at about $51 a barrel are half their level of mid-2014 due to a supply glut that has persisted longer than analysts expected, due in part to record-high output from the 14-member OPEC. Despite the framework OPEC deal reached in Algiers on Sept. 28, OPEC’s production climbed in September according to its own figures and a final agreement at the next meeting on Nov. 30 faces a number of challenges.
These include how OPEC accommodates potential increases from Iran, Libya and Nigeria, reluctant to restrain their output which has been hit by sanctions or conflict. And Iraq told a top OPEC official on Tuesday of its hope for a deal that would lift oil prices while preserving its own output level, an oil ministry spokesman said.
