Constraints Limit Iraq’s August Output Hike

Copyright © 2021 Energy Intelligence Group
  • Production hit a 15-month high, but Iraq still achieves stellar compliance as fragile export infrastructure and refining problems limit additional barrels.
  • Higher exports, weaker Chinese demand and added supplies from rival Mideast producers weigh on Basrah crude values and force Somo to cut prices.
  • Refinery throughputs rise, but power outages force shut-ins at two northern plants, forcing Iraq to hike gasoline imports.
  • Iraqi Oil Minister Ihsan Ismael says that exports in September should average 3.4 million b/d.

Iraq’s crude production hit a 15-month high in August, reaching 4.008 million barrels per day, according to Energy Intelligence estimates, with exports from Basrah rising by 123,000 b/d. But ongoing refinery and infrastructure problems limited last month’s output hike, which means the country still managed to achieve 109% compliance with its Opec-plus target.

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