Loading schedules from a shipping agent showed that Iraq has planned to slash its crude oil exports in July, mainly from its southern terminals. The Basra grades will be the most affected in its effort to comply with its output quota from the OPEC+ oil output cut pact.
This month, Iraq will export about 1.53 million bpd of both Basra Light and Basra Heavy crude grades. In June, the country shipped about 3.1 million bpd. Basra light exports to be cut to roughly 817,000 bpd from 2.24 million bpd last month, while Basra Heavy will be lowered to around 710,000 bpd from June’s 833,000 bpd.
However, traders still opined that the final export number could be higher as there might be a spillover of June cargoes.
Under the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) oil output cut pact, Iraq’s production was more than its quota in May and June and the country is now obliged to compensate for the over-production in later months.
