ERBIL, Kurdistan Region – Iraq pocketed over $8 billion in crude oil sales for the first time in 2023 during the month of July, the country’s highest monthly oil revenue since October of last year.
In its preliminary monthly report on Tuesday, Iraq’s oil ministry said that the country exported more than 106 million barrels of crude oil in the previous month, at a rate of 3.4 million barrels per day, and an average price of over $77 per barrel. This is the highest amount of barrels the country exported so far this year.
The sales brought in nearly $8.3 billion dollars, a significant increase from June’s $7.1 billion, and Iraq’s highest monthly oil revenue since October 2022 when it collected over $9.2 billion.
July’s earnings bring Iraq’s total oil revenue for the current year to over $52 billion.
Iraq’s economy experienced a significant growth compared to previous years in 2022, mainly driven by a record-breaking $115 billion revenue from oil sales during that year.
The World Bank in a report on Monday projected that Iraq’s economic recovery was set to take a hit in 2023 and its gross domestic product (GDP) is expected to contract by 1.1 percent, as a consequence of growth restraints in the oil sector and production cuts.
In compliance with the OPEC+ production cuts, Iraq announced in April that it was cutting oil production by 211,000 barrels per day starting from May and effective until the end of 2023, adding to the two million barrels per day cut already in effect since November of last year.
Lack of structural reforms, over-reliance on oil revenue, and lack of banking sector reforms were also highlighted as factors for risking the country’s economic outlook in the World Bank report.
Oil revenue is Iraq’s main source of income, and the federal government relies on oil sales to cover its costs and pay the salaries of its civil servants.
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