Iraq's federal oil exports rise 3.3% on higher flows from southern terminals

Amman, Jordan — Iraq's federal crude oil exports, which excludes the semi-autonomous Kurdish region, rose 3.3% in February from a month earlier on increased shipments from southern terminals in OPEC's second-largest oil producer, according to official data seen by S&P Global Platts.

Federal exports climbed to 3.415 million b/d in February, up from 3.306 million b/d in January, according to figures from State Oil Marketing Organization obtained by Platts.

The February figure is 311,000 lower than the all-time record of 3.726 million b/d in December 2018.

Exports in January fell 3.5% from a month earlier due to bad weather in the upper Persian Gulf that affected loadings.

Iraq, which for most of last year flouted its OPEC+ quota, is struggling to comply with its new production limit of 4.46 million b/d that runs from January through March.

OPEC+, led by Saudi Arabia and Russia, are in the midst of trimming global output by 1.7 million b/d to soak up excess supply in the first quarter. The alliance is also mulling shaving another 600,000 b/d from output due to a drop in oil demand in top oil importer China, where the outbreak of the deadly coronavirus has crimped economic growth.

In February, Iraq said its January production fell 70,000 b/d to 4.47 million b/d, still above its OPEC+ quota.

The latest S&P Global Platts OPEC survey also showed overproduction in January at 4.6 million b/d, breaking a four-month trend of improving compliance.

Gulf exports

Exports in February from the Persian Gulf terminals in the south reached 3.327 million b/d, up by 67,000 b/d from January, despite two days of rough weather affecting loadings.

Exports also included 61,000 b/d from the Turkish terminal of Ceyhan, which is nearly double that of January, and 17,000 b/d of Qayara heavy oil trucked to the southern port of Khor al-Zubair and 10,000 b/d of Kirkuk oil exported to Jordan by trucks.

Exports of Qayara crude were suspended in the past two month due to protests that blocked the roads to the port. Prior to the protests, which started in October, the export rate of Qayara was around 30,000 b/d.

Nearly 75% of exports from the Gulf terminals or 2.481 million b/d was Basrah Light crude, with 29-31 API, and 846,000 b/d of Basrah Heavy with 23-24 API, according to SOMO figures.