Iraq's oil production fall by 59,000 barrels per day
Baghdad (IraqiNews.com) – A senior Iraqi official at the State Organization for Marketing of Oil (SOMO) revealed on June 2 that the country's oil output in May declined by 59,000 barrels per day as Iraq plans to accelerate measures to compensate for prior overproduction.
Iraq's oil production quota rose by 49,000 barrels per day in May, reaching a total of 4.049 million barrels per day, as reported by S&P Global.
Since April 2024, eight OPEC+ countries, including Iraq, have resumed their voluntary production cuts of 2.2 million barrels per day. The production limit was set to rise to 411,000 barrels per day in May, June, and July 2025.
However, this increase coincides with its compensation plan, which is supposed to compensate for serial overproduction in 2024. In the most recent plan, announced by the OPEC secretariat in Vienna in April, Iraq pledged to produce oil less than its quota by 140,000 barrels per day in May.
The volume of crude oil that Iraq exported by sea declined to 3.27 million barrels per day in May 2025 compared to 3.30 million barrels per day in April 2025.
According to government sources, Iraq's oil exports in May and June 2025 are expected to be less than 3.2 million barrels per day to meet its OPEC+ production quota.
During the first five months of 2025, Iraq's crude oil exports averaged approximately 3.33 million barrels per day, compared to 3.45 million barrels per day during the same period in 2024.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
2 hours ago
- Shafaq News
Budget gridlock: Iraq unlikely to submit 2025 tables amid fiscal strains
Shafaq News/ Iraq's federal budget for 2025 is unlikely to be sent to Parliament anytime soon due to mounting fiscal and political challenges, a member of the Parliamentary Finance Committee warned on Saturday. Hussein Munis, a senior committee member, told Shafaq News that the delay is because of 'severe financial deficits, unstable revenue streams, the absence of a coherent economic vision, and the looming legislative elections.' 'The deficit in the budget law has reached nearly 80T IQD (~ $61B),' Munis said. 'This puts the government in an extremely difficult position as it lacks a structured economic strategy to finalize and submit the tables to Parliament.' Earlier, fellow committee member Muin al-Kadhimi anticipated that the budget tables might reach Parliament by early July. At the time, he noted that the Finance Ministry had reviewed its comments on the tables and submitted them to the Cabinet, which was expected to issue a final position. 'The ministry is preparing the final budget tables after receiving feedback from the Cabinet,' al-Kadhimi stated, adding that the draft might be sent to Parliament following cabinet approval. Observers warn that further delays in passing Iraq's 2025 federal budget will directly impact public salaries, infrastructure projects, and essential services. With over half the year gone, some analysts argue that the budget has become a political bargaining tool, especially as elections approach. 'The budget has turned into a political weapon during electoral seasons,' one analyst said, describing the protracted process as 'a tool for leverage between rival blocs—often at the expense of Iraqi citizens.' Legal experts, meanwhile, stress that failure to disburse funds allocated in a ratified budget law could constitute administrative misconduct. They note that legal action could be pursued against institutions obstructing lawful implementation.
Shafaq News
2 hours ago
- Shafaq News
Iraq warns of economic fallout: Iran-Israel war boosts oil prices
Shafaq News/ Iraq is benefiting from a short-term surge in oil prices driven by the Iran-Israel conflict, but remains economically exposed if the escalation broadens, a senior government adviser warned on Saturday. Mudhir Mohammed Saleh, the Prime Minister's economic and financial adviser, told Shafaq News that Iraq sits on a 'sensitive geopolitical and economic fault line,' cautioning that any deeper slide into conflict could place the country at direct risk. Despite the dangers, he noted that the current hostilities have lifted crude prices by over $10 per barrel, returning them to levels seen at the start of the year. 'The war has created a positive oil shock in terms of pricing,' Saleh said. He explained that prior to the outbreak of the conflict, global energy markets had been declining due to trade tensions between the United States and China, though the Iran-Israel conflict reversed that trend, reviving global oil demand and stabilizing Iraq's revenue outlook—assuming the war remains contained. Saleh flagged the energy sector as the most sensitive to geopolitical crises, highlighting its outsized role in shaping global market volatility. However, he warned that the conflict has already disrupted regional logistics, particularly maritime shipping in the Gulf. 'The external shock is driving up transport and insurance costs,' he said, adding that Iraq now faces broader inflationary pressure due to rising logistics expenses and supply chain uncertainty. He urged a national review of storage, delivery routes, and food security measures. Investor confidence could also take a hit if the conflict drags on, he added, citing increased financial caution among foreign stakeholders operating in Iraq. His comments come as multiple Iraqi aviation officials confirmed that the country is losing millions of dollars daily following the complete closure of its airspace with the beginning of the Iran-Israel war. Prior to the shutdown, around 700 aircraft—passenger and cargo—crossed Iraqi skies each day, generating an average of $450 per passenger flight and $700 per cargo flight, according to navigation data. Since June 13, Iran and Israel have exchanged drone and missile attacks across multiple territories in the Middle East, raising fears of a regional war despite repeated international calls for de-escalation.
Shafaq News
4 hours ago
- Shafaq News
Iran-Israel war adds pressure to KRG formation
Shafaq News/ Escalating tensions between Iran and Israel are deepening the political deadlock in the Kurdistan Region, fueling concerns that the long-stalled formation of the Region's 10th cabinet could collapse entirely. With Iranian missiles and drones entering Iraqi airspace near Erbil, urgency is mounting for Kurdish factions to end their months-long impasse. 'The Iran-Israel conflict has injected dangerous urgency into already fragile negotiations,' observer Burhan Mohammed told Shafaq News, emphasizing, 'This isn't just about forming a government—it's about defining Kurdistan's position amid a shifting regional balance.' Seven months after parliamentary elections, the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) remain at odds over key executive and sovereign positions. In April 2025, KDP leader Masoud Barzani urged rivals to finalize an agreement, warning that Iraq risked being drawn into a broader conflict. Last month, PUK leader Bafel Talabani expressed hope that a deal was close. Political analyst Luqman Ali, however, offered a stark counterpoint. 'This cabinet has been paralyzed from the start—plagued by internal rifts, financial disputes with Baghdad, and now regional war,' he said. 'Kurdistan lies squarely in the path of this confrontation—geographically and politically.' Ali also noted that the latest developments could push cabinet formation until after Iraq's parliamentary elections—if they proceed as scheduled. Notably, this stalemate is not new. Past governments have faced similar delays, with some cabinets taking nearly a year to form. But analysts argue the current impasse reveals deeper, unresolved divisions—now made more volatile by the surrounding regional crisis.
