IRAQ exported US$11.07 billion (RM46.61 billion) of oil last month, the highest level for half a century, as crude prices soared amid shortfall fears following Russia’s invasion of Ukraine, the oil ministry said.

The second-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), Iraq exported “100,563,999 barrels for revenues of US$11.07 billion, the highest revenue since 1972”, the ministry said.

The figures published late yesterday are preliminary data but final data “generally does not vary” much, a ministry official said, speaking on condition of anonymity.

In February, oil revenues reached an eight-year high of US$8.5 billion dollars, with daily exports of 3.3 million barrels of oil.

Oil exports account for more than 90% of Iraq’s income.

Crude prices spiked over fears of a major supply shortfall after Moscow invaded Ukraine on February 24. Russia is the world’s second-biggest exporter of oil after Saudi Arabia.

On Thursday, the OPEC group of oil producing countries and its Russia-led allies agreed on another modest oil output increase, ignoring Western pressure to significantly boost production as the Ukraine conflict has rocked prices.

The 13 members of the Saudi-led OPEC and 10 countries spearheaded by Russia – a group known as OPEC+ – backed an increase of 432,000 barrels per day in May, marginally higher than in previous months.

The United States has urged OPEC+ to boost production as high energy prices have contributed to soaring inflation across the world, which has threatened to severely derail the recovery from the Covid-19 pandemic.

While OPEC refused to budge, Washington said it would tap its strategic stockpile by a record amount in a bid to cool soaring prices.

The international benchmark contract, Brent North Sea crude, flirted with a record high in early March as it soared to almost US$140 per barrel, but has retreated since then.

On Friday, oil was around US$100 a barrel.

Oil revenues are critical for Iraq’s government, with the country mired in a financial crisis and needing funds to rebuild infrastructure after decades of devastating war.

Iraq, with a population of some 41 million people, is also grappling with a major energy crisis and suffers regular power cuts.

Despite its immense oil and gas reserves, Iraq remains dependent on imports to meet its energy needs.

Neighbouring Iran currently provides a third of Iraq’s gas and electricity needs, but supplies are regularly cut or reduced, aggravating daily load shedding. – AFP, April 2, 2022.