Federal Iraq’s consumption of refined products has blown past 2013 levels this year as areas liberated from Islamic State (IS) control are being reintegrated into the state. July products consumption hit 709,000 b/d, easily surpassing the previous record of 692,000 b/d set in June. Consumption is up a whopping 53% on July 2015 volumes of 464,000 b/d.
Year-to-date consumption levels are up substantially as well. Quarterly products consumption exceeded 600,000 b/d in consecutive quarters for the first time in federal Iraq’s history this year (see chart), and Q3 is set to break further records. Prior to the IS advances, Iraq’s products consumption averaged 521,000 b/d in the first half of 2014 before slumping to 429,000 b/d for 1H 2015 – a direct result of the IS occupation. Not just is Baghdad now having to supply more products to its populace than pre-IS, but it is having to do so while nursing its war-ravaged refineries that were struggling to keep up with demand even before being damaged by the group. (CONTINUED - 857 WORDS)
