IRAQ DATA: August crude oil exports show it may be close to meet OPEC+ cuts - S&P Global

Highlights

OPEC+ August quota was 3.804 mil b/d

Iraq will ask for more time to make up for overproduction

KRG exports fell along with Baghdad shipments

Amman — Iraq's oil exports slipped to a five-year low in August, indicating its compliance with OPEC+ production cuts may be improving.

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Shipments, including from the semi-autonomous Kurdish region, averaged 3.02 million b/d, the lowest since February 2015, and down 6% from July, according to government and shipping data compiled by S&P Global Platts.

The total included 2.597 million b/d of federally controlled exports reported by the Iraqi oil ministry in Baghdad, down from 2.763 million b/d in July, and 423,000 b/d from the Kurdish region in the north, down from 455,000 b/d in July, according to shipping data.

Iraq had promised the OPEC+ producer group it would compensate for overproduction in May and June by implementing extra cuts from July to September. The country's May-July production quota was 3.592 million b/d. It is 3.804 million b/d ifrom August through the end of the year.

Including the extra compensation cuts, Iraq's effective cap is about 3.404 million b/d for August and September.

The Iraqi oil ministry has not reported August production yet, but theexport figures indicate improving compliance after months of producing well above its commitment, frustrating other OPEC+ members.

Federal exports included 2.5 million b/d from southern Gulf terminals and 97,000 b/d of Kirkuk oil from the Turkish terminal in Ceyhan. There were no exports by trucks to Jordan.

State oil company SOMO sources said 76% of exports were Basrah Light of average quality of 29-31 API degrees, and 24% of Basrah Heavy with 23-24 API degrees.

Iraq's oil minister told local media on Sept. 1 the country was having a hard time meeting OPEC+ cuts because the Kurdish region, which largely retains control of its crude production and exports, pending a budget agreement with Baghdad, had not reined in its output. Kurdistan Regional Government leaders have said they cannot cut production or exports because of low oil prices and financial constraints.

Federal revenue from oil sales in August was $3.517 billion, up from $3.492 billion in July as the average selling price rose to $43.693/b from $40.762/b.

Iraq will request the OPEC+ monitoring committee meeting on Sept. 17 for two more months to compensate for earlier overproduction to the end of November, oil minister Ihsan Ismaael said in a Sept. 2 statement.



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