OPEC’s second-largest producer, Iraq, was the single biggest supplier of crude from the cartel to the United States in May, per data from the U.S. Energy Information Administration (EIA) cited by Iraqi media outlets Shafaq News and IraqiNews.
Iraq ranked first among the 12 OPEC producers in terms of exports to the United States in May. Shipments totaled nearly 7 million barrels of crude, 6.95 million barrels to be precise. The second-largest OPEC supplier to the U.S. was Nigeria with 6.803 million barrels of crude oil exports, followed by Saudi Arabia with 6.208 million barrels of crude.
Iraq has boosted exports in recent years, including to the United States, as it hasn’t adhered to its supply quota under the OPEC+ agreements. Iraq, Kazakhstan, and Russia have been overproducing above targets for years.
But in May, Iraq cut its crude oil production by 50,000 barrels per day (bpd) to 3.93 million bpd, compared to its target of 4.049 million bpd, according to the latest OPEC data from secondary sources.
Iraq is compensating for previous overproduction as it has been one of the main overproducers in the OPEC+ deal for years, alongside Kazakhstan and Russia, non-OPEC members of the OPEC+ pact.
Last month, estimates put Iraq’s crude oil exports to the United States surging past 5 million barrels in May, marking Baghdad’s highest monthly volume to U.S. refiners so far this year. The surge reflects sustained U.S. appetite for heavier Middle Eastern grades, with Iraqi crude averaging between 160,000 bpd and 190,000 bpd in May.
As OPEC+ maintains voluntary output curbs and U.S. shale growth moderates, Iraq has solidified its position among Washington’s top five crude suppliers.
Iraq’s export increase also provides critical fiscal relief for Baghdad, with crude sales accounting for roughly 90% of Iraq’s state revenue. Recent price support near $80 per barrel has further underpinned Iraq’s monthly revenues, helping finance public sector wages and infrastructure projects.
By Charles Kennedy for Oilprice.com
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