Iraq's southern oil exports have risen to 3.10 million barrels per day (bpd) so far in October, according to loading data and an industry source, setting shipments from OPEC's second-largest producer on course for a monthly record.
The boost is an indication of continued high output from major members of the the Organization of the Petroleum Exporting Countries, which has added to a global surplus and contributed to downward pressure on prices.
"Any additional barrels will add to the oversupply," said Carsten Fritsch, analyst at Commerzbank. "Prices remain on the back foot."
Exports from Iraq's southern terminals have averaged 3.10 million bpd in the first 27 days of this month. If sustained, that would beat the existing record high of 3.064 million bpd reached in July.
Shipments jumped in June after Iraq's decision to split the crude stream into two grades, Basra Heavy and Basra Light, to resolve quality issues. This has allowed some companies working at Iraqi oilfields to increase production.
The southern fields produce most of Iraq's oil. Iraq's actual southern exports are lower than the 3.68 million bpd it aimed to load this month, but the country tends to allocate more crude than it can supply each month.
Shipments from Iraq's north via Ceyhan in Turkey have risen this year despite tensions between Baghdad and the Kurdistan Regional Government over budget payments, although the rate has dropped in October.
Independent KRG exports have averaged 510,000 bpd in the first 27 days of October according to loading data, while northern exports by Iraq's State Oil Marketing Organisation have fallen to zero from about 20,000 bpd in September.
This would be down from 600,000 bpd of northern exports in September and means that total Iraqi shipments may not reach a record in October.
Iraq's growth follows investment by Western oil companies in the southern oilfields and an easing of export bottlenecks, although the pace of expansion is expected to slow in 2016.
Baghdad is hoping to raise southern exports further next year to as much as 3.2 million bpd, a senior Iraqi oil source said earlier this month. Risks include bad weather, technical problems and unrest.
original source: https://en-maktoob.news.yahoo.com/iraqs-southern-oil-exports-head-another-record-october-154739547--business.html