LONDON: Oil exports from Iraq’s southern terminals have jumped by more than 300,000 barrels per day (bpd) so far in February, according to loading data, as shipping delays caused by bad weather in January were cleared.
Iraq is aiming to deliver on a plan for significant supply growth in 2014, following a slowdown last year caused by technical problems and worsening violence. A sustainable increase could weigh on global oil prices.
Exports from Iraq’s southern terminals have averaged 2.36 million bpd in the first 24 days of February, according to shipping data. Two industry sources who also monitor the shipments had a similar estimate. That would be up from 2.04 million bpd in January, when bad weather delayed cargoes. Iraq will not report its February export rate until the end of the month, although Oil Minister Abdul Kareem Luaibi has predicted it would rise.
“The Iraqis have done well this month,” said a source at a company that buys Iraqi crude. “I think we may have delays in March too, but lower.”
If sustained in the rest of the month, the volume would amount to the highest level since at least 2003. Still, Iraq’s exports fluctuate daily due to a host of factors including creaky infrastructure, violence and the weather. A strong start to January’s exports was not sustained. The southern ports, where work has been under way to expand capacity, typically handle almost all of Iraq’s oil exports. From the north, Iraq also exports crude from its Kirkuk fields to Ceyhan in Turkey.
So far in February, northern shipments have amounted to at least 250,000bpd, up from 190,000bpd in January. That would put exports at 2.61 million bpd in February, up from 2.23 million bpd in January. Northern exports could increase further if the autonomous region of Kurdistan starts to sell oil via a pipeline to Turkey. However, shipments have yet to begin as a long-running dispute between Baghdad and the KRG remains unresolved. Reuters
