Iraq's oil shipments expected to increase as output rises
Sources familiar with the situation said that OPEC's second-largest oil producer plans to increase exports of destination-free Basrah Medium crude to around 18 million barrels next month, according to Bloomberg.
According to one source, the planned increase is significantly higher than the levels seen in July and is expected to lead to a slight increase in overall exports.
OPEC and its partners are in the midst of a production surge that has so far projected greater oil supplies than it delivers.
The entire supply of destination-free crude would be around four million barrels, or between 20 and 30 percent higher than average monthly volumes.
OPEC and its partners have raised output in recent months. That decision, which reverses years of supply constraints, comes amid indications of a worldwide supply surplus.
Destination-free shipments are often distributed to supply companies and equity shareholders and are in great demand. Shell, TotalEnergies, and China National Petroleum Corporation are all equity producers.
A few kinds of Middle Eastern crudes are marketed on a destination-restricted basis, which means they may only be sent to a particular refinery or consumer and cannot be easily traded.
The entire initiative includes both destination-free and destination-restricted shipments of Basrah Medium and Basrah Heavy crudes, as well as minor quantities of the Qayara grade.
Iraq is one among several OPEC+ members that have previously surpassed their production limitations. If a greater ceiling was permitted, any additional output would make it more difficult for Iraq to fulfill its objective.
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