Iraq’s July crude oil production hits new 13-month high: SOMO
Iraqi crude oil production hit its highest in 13 months in July of 4.46 million b/d, the country’s State Oil Marketing Organization said.
OPEC’s second largest producer has consistently reported total production of 4.36 million b/d since September last year. Both figures include output from the semi-autonomous Kurdistan Regional Government.
Under the OPEC cut deal, which began January 1, 2017, and has now been extended through to the end of 2018, Iraq was given a ceiling of 4.351 million b/d.
Along with its non-OPEC allies, the group agreed June 23 to raise production by 1 million b/d. However, it left unsettled how the increase would be allocated.
S&P Global Platts latest OPEC survey, one of the secondary sources used by the producer group to gage compliance, put Iraqi production at 4.57 million b/d in July, some 110,000 b/d higher than Iraq’s official number.
In a document sent to Platts, Iraq also said it exported 3.875 million b/d in July, inching up 25,000 b/d from June to hit its highest since January 2017.
Data from the oil ministry earlier this month put exports from Iraq’s Persian Gulf terminals at 3.543 million b/d, a new record high, leaving Kurdish pipeline exports to the Turkish Mediterranean port of Ceyhan at 242,000 b/d.
Iraq has no option to export Kirkuk crude from the north of the country due to a political dispute with KRG, while the federal pipeline to Turkey was destroyed by militants from the self-styled Islamic State group in early 2014.
The KRG itself shipped around 316,129 b/d in July, according to reports obtained from sources at Ceyhan. This is around 74,000 b/d higher than SOMO’s estimate of Kurdish exports.