The double oil reduction comes into effect.. Iraq faces two options that will affect the 2024 budget

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[size=52]The double oil reduction comes into effect.. Iraq faces two options that will affect the 2024 budget[/size]

[size=45]It is assumed that Iraq has begun implementing its voluntary “double” reduction in oil production, which it decided last November, and which begins from this January for a period of 3 months, that is, until the end of next March.[/size]
[size=45]The new voluntary reduction came at 211 thousand barrels per day, to be additional to the previous voluntary reduction of the same amount, bringing the voluntary reduction to more than 420 thousand barrels per day, and thus Iraq’s production will be from the beginning of the current year until the end of March, that is, during the next 90 days, At a rate of only 4 million barrels per day. But this reduction and the current oil production figure will carry behind it many questions and ambiguous indicators about the fate of Iraqi oil exports in the next budget 2024, as well as oil refining in Iraqi refineries.[/size]
[size=45]The production of 4 million barrels of oil per day will include all parts of Iraq, including the Kurdistan region. In contrast, the quantities of oil fixed in the budget amount to 3.5 million barrels per day, and if Iraq actually succeeds in achieving this export figure, in contrast, only half a million barrels per day will be available. For refining in refineries, whether in Kurdistan or other Iraqi refineries.[/size]
[size=45]In Iraq, the refining capacity in the northern, central and southern refineries is 700 thousand barrels per day, in addition to more than 120 thousand barrels per day that the Kurdistan region is refining, which means that among the more than 800 thousand barrels that were being refined daily in the Iraqi and Kurdistan refineries, there will be 500 thousand barrels. Only daily available for refining at refineries.[/size]
[size=45]Accordingly, Iraq will have to reduce oil exports for 3 months, and it is not known whether this voluntary reduction will be extended, and Iraq’s exports will then be 3.3 million barrels or less in exchange for maintaining refining capacity in the refineries.[/size]
[size=45]Or for Iraq to maintain its daily oil exports, fixed in the budget, at 3.5 million barrels per day, in exchange for reducing refining in refineries by about 40%, which will lead, as a result, to an increase in Iraq’s import of oil derivatives due to the decrease in refining in refineries. The Ministry of Oil announced, yesterday, Wednesday. , on the total exports and revenues achieved for the month of last December, according to preliminary statistics issued by the Iraqi Oil Marketing Company (SOMO).[/size]
[size=45]The Ministry’s Government Information and Communications Office stated in a statement received by Al Mada that “the total amount of crude oil exports amounted to 108 million and 56 thousand and 590 barrels, with revenues amounting to (8.316) billion dollars.”[/size]
[size=45]He added, “The total quantities of crude oil exported for the month of December from the oil fields in central and southern Iraq amounted to 107 million and 592 thousand and 532 barrels, while the quantities exported to Jordan amounted to 464 thousand and 58 barrels.”[/size]
[size=45]The statement continued, “The average daily quantities exported amounted to 3 million and 486 thousand barrels per day, and the average price of one barrel reached $76.96.[/size]
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