Federal Iraq exported just 2.65mn b/d in Q3, the lowest level in five years and 500,000 b/d down from the previous quarter’s 3.16mn b/d. The drop is due to Iraq’s participation in Opec+ cuts (MEES, 9 October) which have at least helped firm up prices in recent months. Indeed, a near doubling in the price of Iraqi crude to $41.6/B for Q3 more than offset the drop in volumes. Export revenues leapt from $6.42bn to $10.18bn (a monthly average of $3.39bn) as a result.

But Baghdad still finds itself in a desperate fiscal situation. Revenues for the first nine months of 2020 are down almost 50% year-on-year, from $59.7bn to just $31.3bn, putting immense strain on government coffers. For 2020 as a whole, revenues look set to come in around $43bn, the lowest since 2016, whilst volumes are on track to fall below 3mn b/d for the first time since 2014 (see chart). (CONTINUED - 517 WORDS)