Iraq Exports Hold Close to Record High in May
Iraq's oil exports have held above 3 million barrels per day (bpd) so far in May, according to loading data and an industry source, keeping shipments from OPEC's second-largest producer close to a record high.
Another strong month from Iraq adds to signs of high output from major members of the Organization of the Petroleum Exporting Countries focused on keeping market share, weighing on global oil prices.
"There is little doubt that record crude exports out of Iraq are adding further length to an already extremely well-supplied market, thereby adding downside pressure," said Eugene Lindell, oil analyst at JBC Energy in Vienna.
Exports from Iraq's southern terminals have averaged 2.55 million barrels per day (bpd) in the first 21 days of May, according to shipping data seen by Reuters and an industry source, down from 2.63 million bpd in April.
But exports from Iraq's north via Ceyhan in Turkey, comprising Iraq's Kirkuk crude and Kurdish oil, have averaged 500,000 bpd so far in the month, according to loading data, up from April's 450,000 bpd.
The southern oilfields, being developed with the help of foreign oil companies, produce most of Iraq's oil and the terminals are its main outlet to world markets.
Located far from the parts of the country controlled by Islamic State, they have kept pumping despite the conflict. But some minor technical glitches have weighed on exports so far this month, according to a shipping source.
Northern exports were offline for most of 2014 and resumed in December following a deal between Baghdad and the Kurdistan Regional Government. Since the December restart, the export rate has more than doubled.
Iraq's total exports so far in May of 3.05 million bpd, according to the loading data and industry sources, are just below the 3.08 million bpd that Iraq said it exported in April - a record high.
Iraq has targeted even higher exports in 2015 although that is not certain. Bad weather, technical problems and unrest can disrupt supplies.
(By Alex Lawler)
