Baghdad - Al-Forat
Official data from the Ministry of Oil showed that oil exports rose last month to their highest level in two years, driven by larger volumes shipped from the southern ports and improved prices on world markets.
According to the data, total exports exceeded 104 million barrels during the month, a daily average of nearly 3.48 million barrels, most of it shipped from Basra’s ports on the Gulf, while volumes exported through Turkey’s Ceyhan port rose markedly after pumping through the Kirkuk pipeline became regular.
The State Oil Marketing Organisation (SOMO) said the average price per barrel was about $76, taking monthly revenue above $7.9 billion, the highest since the start of the year.
Basrah Medium topped the list of grades exported, followed by Basrah Heavy and Kirkuk crude, with shipments spread across more than 40 international companies. Refiners in India, China and South Korea took the largest share, alongside cargoes bound for Europe and the United States.
Implications for the budget
Experts say higher revenue gives the government more room to fund salaries and investment projects, but it is also a reminder of the risks of near-total dependence on oil, which accounts for more than 90% of state revenue.
“Today’s good figures are an opportunity to build a reserve fund that protects the budget from price swings, not to increase operating spending”Dr Basim Al-Ukaili, professor of economics at the University of Basra
Specialists note that if prices hold at their current levels until the end of the year, the planned budget deficit could shrink, but that would not remove the need for structural reforms, including maximising customs and tax revenue and cutting waste in public spending.
Plans to raise production capacity
The Ministry of Oil is adhering to the production ceiling agreed within the OPEC+ alliance, with plans to raise production capacity gradually through field development projects in Basra and Maysan, and to capture associated gas to reduce flaring and supply fuel to power stations. The ministry is also seeking to increase export capacity at the southern ports through new floating platforms and the rehabilitation of storage tanks in the Faw area.
