Iraq Oil Revenues Hit Two Year High As Somo Waves Goodbye To Basrah Light

8 Oct 2021 Issue: 64 / 40 By: Yesar Al-Maleki

Iraq is benefitting from surging oil prices, with export revenues hitting two-year highs. Amid continued struggles to achieve contractual specifications for Basrah Light, Somo is taking its former flagship grade off the table for term buyers from 2022.

Iraq’s oil revenues have surged to their highest level in more than two years as Opec’s second largest producer benefits from rising oil prices. Oil export revenues for September came in at $6.71bn, the highest figure since July 2019’s $6.76bn, and up $178mn from August.

The latest figures from state oil marketer Somo highlight the extent to which Iraq’s fiscal position has improved over the course of 2021. Oil typically accounts for almost 90% of government revenues, and so the price rout last year pushed Iraq’s economy to the edge of oblivion. But after bottoming out at just $1.51bn in April 2020, oil export revenues have more than quadrupled over the subsequent 17 months. The continued strengthening of oil prices in early October means that Iraq’s oil exports could top $7bn this month for the first time since May 2019 (see chart 1). (CONTINUED - 722 WORDS)