Iraq hit its Opec+ crude production target in August after slightly exceeding its quotas in the previous four months, according to figures released by state-owned oil marketer Somo.
Somo said last month's output matched the country's 4.651mn b/d August quota, up by 1pc from the company's 4.584mn b/d estimate for July. Somo's figures include direct oil burn, which it pegged at 35,000 b/d in August, the same as July. August's output growth did not translate into a rise in exports though. Somo estimates that Iraq exported 3.643mn b/d last month — including Kirkuk blend supplies sold by the Kurdistan Regional Government — 62,000 b/d lower than July.
Iraq's oil ministry has reiterated that last week's violent protests in Baghdad did not impact crude operations. It attributes the decline in Somo-marketed crude exports to technical difficulties at Basrah's oil terminals.
Limited export capacity has been a key constraint on Iraqi production in recent months, sources said. An increase in capacity at the Basrah Oil Terminal has been pushed back to the fourth quarter of this year at the earliest because of delays to upgrade work at pumping stations. These setbacks come against the backdrop of a protracted political deadlock in Iraq, which is curbing spending by the caretaker administration.
Meanwhile, Jordan did not receive any Iraqi crude during August, with both sides in talks to renew their supply deal. The oil ministry expects crude shipments to Jordan to restart in September.
Last month's drop in Iraqi exports led to higher domestic refinery runs and a faster pace of stockbuilding. Somo puts August's stockbuild at 168,000 b/d, up from 142,000 b/d in July, and said refinery runs ramped up to 783,000 b/d from 680,000 b/d over the same period.
