Iraq pockets over $9 billion in October oil sales

ERBIL, Kurdistan Region - Iraq reported generating over $9 billion from oil sales for the month of October, continuing the country’s streak of increasing oil revenues for the fourth consecutive month.

In its preliminary monthly report, the Iraqi oil ministry announced that more than 109 million barrels of crude oil were exported during the previous month, at an average rate of 3.5 million barrels per day and an average price of $88.2 per barrel.

A total of $9.66 billion was generated from oil sales according to October’s early numbers, down from September's $9.49 billion. Last month’s oil revenue is Iraq’s highest since August 2022 when it collected over $9.68 billion.

The Iraqi oil ministry has reported nearly $80 billion from oil sales since the start of the year. The country generated a record-breaking $115 billion from oil sales in 2022.

The World Bank in a report on Monday projected that Iraq’s economic recovery was set to take a hit in 2023 and its gross domestic product (GDP) is expected to contract by 1.1 percent, as a consequence of growth restraints in the oil sector and production cuts.

In compliance with the OPEC+ production cuts, Iraq announced in April that it was cutting oil production by 211,000 barrels per day starting from May and effective until the end of 2023.

Oil revenue is Iraq’s main source of income, and the federal government relies on oil sales to cover its costs and pay the salaries of its civil servants.