In May, the country broke the record for monthly oil export revenues, receiving $11.4 billion.

Iraq decided to increase oil production

Iraq decided to increase oil production / Photo: Getty Images, Collage: Today

Iraq plans to nearly double oil production. So, by the end of 2027, the country wants to produce up to 8 million barrels of black gold per day.

This statement was made by Iraqi Oil Minister Ihsan Abd al-Jabbar, media reported.

Note that in the spring of 2020, OPEC countries agreed with other oil-producing countries to reduce black gold production by 9.7 million barrels per day. This happened due to the economic consequences of the coronavirus, when an unsold supply of oil formed on the market.

Then the terms of the agreement were repeatedly adjusted. For example, since August 2021, the alliance has increased production by 400,000 barrels per day every month, by 432,000 barrels per day in May 2022, and by 648,000 since June. As of June, the restrictions are 1.296 million barrels per day.

For Iraq, the allowed production level for July will be 4.58 million barrels per day. In May, the country earned $11.4 billion from oil exports, setting a new revenue record.

Oil prices

Oil cost began to decline after the United States began to release strategic reserves of black gold, and the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC +) increased production.

“It is clear that macroeconomic factors are driving oil at the moment, rather than fundamental factors that continue to provide support.”said Warren Patterson, Head of Commodity Research at ING.

At the same time, analysts note that with the beginning of the summer season in the world there will be an increase in demand for petroleum products.

Earlier we told which country increased purchases of Russian oil despite the sanctions. We also wrote which country is more will not be able to receive Russian oil none of the existing paths.