Iraq’s forecasts $2.5 billion revenue for oil sales this month

Iraq’s Oil Ministry is hopeful that, in June, it could export 2.8 million barrels per day. As a result, the country would have an income equal to $2.5 billion. 

The Iraqi Oil Ministry said it expects revenues in July, with oil at current prices $34 to $35 per barrel. In fact, in some cases, Iraq has been able to sell its oil for $39 a barrel.

The Iraqi Ministry of Petroleum said it was committed to an agreement with OPEC and its allies to reduce production.

According to the Iraqi Ministry of Petroleum, the country sold its oil for $21 a barrel in May, earning $2.091 billion. 

The Iraqi oil marketing company, Sumo, said the country produced 4.068 million barrels per day in May, more than its 3.592 million barrel quota under the OPEC Plus contract. Iraq exported 3.63 million barrels a day in May.

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Iraq has promised to comply with production cuts

The coronavirus pandemic plummeted oil demand globally. The drop was so fast that the world ran out of places to store it. Meanwhile, the two largest producers of the commodity, Saudi Arabia and Russia, oversupplied the oil market. 

After an oil price war between Saudi Arabia and Russia, at the beginning of April, OPEC producers agreed to reduce their production by around 10%. According to the deal, the Organization of Oil Producing Countries and its allies have confirmed to decrease the world production of the commodity by 9.7 million BPD. It has helped prop up the commodity prices as the demand for the commodity began to recover. 

Despite the deal reached in April, the organization has been challenged by those member states that refused to comply with output reductions. 

OPEC and its allies, including Russia, agreed in June to continue cutting production until the end of July. This should then help pull the oil market out of the Coronavirus crisis, supposedly.

Under the agreement, Angola, Iraq, Kazakhstan, and Nigeria must make up for their non-commitment in May and June, and cut production in July, August and September above their quotas.

The Joint Ministerial Monitoring Committee (JMMC) will be ensuring the compliance of reductions within OPEC+. The body is led by the Saudi Arabian Minister of Energy, Prince Abdul Aziz, and Russian Alexander Novak.

Assem Jihad, the spokesperson of Iraq’s Ministry of Oil, stated that Iraq has been through economic difficulties. This was what complicated the country’s ability to comply earlier.

OPEC’s decisive action has now supported markets to start rebalancing.