Iraq’s oil exports from Iraq’s southern ports have jumped by 300,000 barrels per day (bpd) so far in January, according to shipping data reported by Reuters.
Exports from the al-Basra Oil Terminal (ABOT) (pictured) and Khor Al Amaya averaged 1.8 million bpd from January 1 to January 24, up from 1.5m bpd in December.
The increase reflects efforts by foreign oil companies to boost production. Oil companies such as BP and Italy’s ENI have been working to boost output in Iraq, holder of the world’s fourth largest reserves.
Analysts, including Paul Tossetti, senior energy adviser at PFC Energy, believe the higher supply could temper the rally in oil prices.
Iraq’s oil exports from its southern ports can also be affected by weather conditions. With almost a week to go in January, there is still scope for January’s total to change.
Increased output has come mainly from the Rumaila and Zubair fields, developed by BP and ENI respectively. Both companies took less time than expected to raise supplies above the 10 percent level that allows them to recover their costs.
Progress so far has taken production to 2.7 million bpd, the highest level in two decades. The strong start to 2011 suggests supply could rise further this year, analysts said.