- Iraq plans to significantly raise exports of destination-free Basrah Medium crude in August, adding up to 4 million extra barrels.
- The increase aligns with OPEC+ efforts to ramp up oil output, even as overall supply has yet to meet pledged levels fully.
- These flexible crude shipments are typically allocated to equity partners like Shell, TotalEnergies, and CNPC.
- Iraq’s rising output may challenge its ability to stay within OPEC+ quota limits, amid broader market concerns over a potential supply glut.
Iraq is set to increase exports of its Basrah Medium crude in the coming month, signaling a ramp-up in oil production from the OPEC+ member. According to sources familiar with the plan, shipments of the destination-free grade are expected to reach between 17 million and 18 million barrels, representing a notable increase from July’s volumes. This move will contribute to a modest overall boost in Iraq’s total crude exports, as reported by gCaptain.
Iraq Expands Crude Exports as OPEC+ Ramps Up Output
Iraq’s increased shipments of Basrah Medium crude reflect the broader efforts by OPEC and its allies to gradually raise oil production, even as actual output has lagged behind initial promises. This latest move signals that more barrels are beginning to reach the market, helping to sustain oil prices during peak summer demand.
The upcoming rise in destination-free Basrah Medium volumes — an estimated 4 million barrels more than usual — highlights Iraq’s intent to boost physical exports. These freely tradable cargos, typically allocated to upstream partners like Shell, TotalEnergies, and China National Petroleum Corp., contrast with destination-restricted barrels that are tied to specific end users and can’t be resold.
Iraq, OPEC’s second-largest producer, is expanding exports despite ongoing concerns over a potential global oversupply. The nation’s crude shipment volumes rose to around 3.35 million barrels per day in June, with Basrah Medium accounting for over 60% of that. These exports remain unaffected by the recent drone attacks in Kurdistan, as SOMO — Iraq’s state oil marketer — doesn’t currently export from the region.
While full export plans for August haven’t been disclosed, the rise in destination-free volumes suggests a push to maximize production. This could pose challenges for Iraq in meeting its OPEC+ quota commitments, especially with past instances of overproduction. Meanwhile, Saudi Arabia, the group’s leading member, has also been shipping at high rates amid ongoing regional tensions.
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Source: gCaptain
