After three consecutive months within touching distance of 100,000 b/d, federal Iraqi exports through the Kirkuk-Ceyhan pipeline dropped to 75,000 b/d in July. A source tells MEES that the drop is not due to any mechanical problems with the pipeline, but because volumes from North Oil Company’s (NOC) Kirkuk operations are being increasingly diverted to refineries to meet domestic demand. This situation could persist through summer, given Iraq’s need for fuel oil for power generation due to its insufficient gas volumes (MEES, 5 August). Diesel consumption in private generators also typically increases in the hot summer months.