HIGHLIGHTS
April oil production was 3.93 million b/d
Domestic crude 13% higher than earlier estimate
Iraq has busted its quota since February
Iraq, OPEC’s second largest producer, has revised upward its April oil production figure by 1.7% to 3.930 million b/d, reflecting higher domestic crude use during the month, the State Oil Marketing Organization said on May 25.
Domestic crude use, including in refineries and power stations, reached 572,000 b/d in April, 12.6% higher than 508,000 b/d figure mentioned in a May 11 statement, SOMO said.
SOMO had said then that Iraq’s oil output fell marginally in April to 3.863 million b/d, down 2,000 b/d from March.
That was above Iraq’s OPEC+ quota of 3.857 million b/d for the third month in a row.
Independent secondary sources used by OPEC to monitor member output, including S&P Global Platts, had pegged Iraq’s April production higher, at an average of 3.920 million b/d, according to the organization’s latest monthly oil market report.
Easing OPEC+ cuts
With OPEC and its allies planning to roll back production quotas over the next few months in anticipation of greater global oil demand, Iraq’s cap will rise to 3.905 million b/d for May, 3.954 million b/d for June and 4.016 million b/d for July.
Iraq has failed since February to adhere to its OPEC+ quota as the country remains mired in a financial crisis and continues to struggle with the pandemic.
Iraq’s non-compliance has complicated OPEC+ efforts to control supply at a time when demand is being impacted by the resurgence of COVID-19 in key oil consuming countries such as India.
OPEC+ ministers plan to convene online June 1 to review market forecasts, adjudicate compliance, and decide whether to continue with their gradual easing of quotas.
Source: S&P Global, 25. May 2021
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