IRAQ (Washington Insider Magazine) – As a result of Russia’s war in Ukraine, Iraq’s oil ministry claims it exported $11.07 billion worth of oil during March, the largest number in 50 years.
According to Al Jazeera, Iraq’s record oil supply, which contributes for more than 90% of the country’s revenue, is a significant boost to the country’s finances.
Iraq, the Organization of Petroleum Exporting Countries’ (OPEC) second-largest producer, supplied 100,563,999 barrels for $11.07 billion in revenue, the most since 1972, according to the ministry.
According to a ministry source who spoke on the condition of anonymity, the results released late Friday are preliminary data, but final data “generally does not vary” greatly.
Oil revenues hit an eight-year record of $8.5 billion in February, with daily shipments of 3.3 million barrels.
Oil profits are vital for Iraq’s government, which is embroiled in a financial meltdown and in desperate need of funding to restore infrastructure following decades of destruction.
Iraq, which has a population of 41 million people, is likewise experiencing a serious energy problem and is experiencing frequent power outages.
Iraq is still reliant on imports to satisfy its energy demands, despite its vast gas and oil reserves.
Iran presently supplies a third of Iraq’s gas and power needs, however supplies are frequently decreased or stopped, causing daily load shedding to worsen.
Following Russia’s invasion of Ukraine on February 24, crude prices soared on worries of a significant supply shortage. After Saudi Arabia, Russia is the world’s second-largest oil exporter.
The OPEC group of oil-producing nations and its Russia-led partners settled on another minor rise in oil production on Thursday, defying Western calls to increase supply considerably as the Ukraine crisis has rocked markets.
In May, the 13 OPEC members led by Saudi Arabia and ten nations led by Russia – known as OPEC+ – endorsed a rise of 432,000 barrels per day, somewhat higher than in prior months.
High energy costs have led to surging inflation throughout the world, which has directly threatened to undermine the economic recovery from the COVID pandemic. The US has asked OPEC+ to increase output.
While OPEC refused to bend, the United States announced that it will draw down its strategic reserve by a staggering amount in an effort to bring down surging oil prices.
Brent North Sea crude, the worldwide benchmark contract, flirted with a record high in early March when it climbed to over $140 per barrel, but has since receded.
Oil was around $100 a barrel on Friday.
