Iraq's Oil Exports Surge to 2 Million Barrels Per Day

Strategic Insights -

Iraq's oil exports have rebounded significantly, reaching 2 million barrels per day this month. The increase is attributed to a combination of factors, including the opening of Iraq's second crude export terminal at Khor al-Amaya, which has introduced more flexibility to lifters and reduced anchorage time at the main terminal, Basrah Oil Terminal (BOT). The terminal's four berths are fully operational, with four vessels currently berthed, loading cargoes ranging from 1 million to 2 million barrels.

Key Takeaways:

  • Iraq's oil exports have reached 2 million barrels per day this month, surpassing prewar levels.
  • The opening of the Khor al-Amaya terminal has introduced more flexibility to lifters, reducing anchorage time at BOT.
  • Only two tankers can load Basrah Light crude at any one time at BOT, while the Khor al-Amaya terminal offers the option to load 1 million bbl cargoes in 24-36 hours.
  • Iraq's State Oil Marketing Organization (Somo) has introduced a 10-cent/bbl discount as an incentive to lifters willing to switch from BOT to Khor al-Amaya.
  • Traders claim that Iraq's official selling prices (OSP) for April are too high for the US market.
  • The reemergence of Kirkuk crude in the Mediterranean has made Basrah Light less interesting for European refiners.
  • Iraq's crude is facing competition from West African and North Sea barrels on offer into the US market.

Statistics:

  • 2 million barrels per day: Iraq's oil exports this month, surpassing prewar levels.
  • 1.8 million b/d: Average export volume from the two Mideast Gulf terminals.
  • 6 million bbl: One-off tender of Kirkuk crude from the Mediterranean export terminal of Ceyhan.
  • 12 vessels: Expected to arrive at the Khor al-Amaya terminal by month's end.
  • 4 vessels: Currently berthed at BOT, loading cargoes ranging from 1 million to 2 million barrels.
  • $1,500 per vessel: Fixed fee paid by lifters to the Iraqi General Co. for Maritime Transportation in Basrah.
  • 30,000 bbl: Minimum cargo size for the Khor al-Amaya terminal.
  • 48 hours: Minimum loading time for a 2 million bbl cargo at BOT.
  • 24-36 hours: Loading time for 1 million bbl cargoes at the Khor al-Amaya terminal.

Sources:

  • Energy Intelligence: Calculations based on tanker loadings.
  • Shipping and trading sources: Vessel arrivals and loading schedules.
  • Somo official: Comments on pumping rates and terminal operations.
  • Market sources: Comments on port conditions and lifting procedures.
  • Traders: Comments on oil prices and market demand.