Iraq Oil Exports Up Again in Feb

Reuters reports that Iraq exported an average of 2.202 million barrels per day in February, up from 2.16 million bpd in January, and the highest level since the 2003 U.S.-led invasion.

Falah Alamri, head of the State Oil Marketing Organisation (SOMO), said exports from the northern fields, which included crude from the country’s Kurdish region, rose to 494,000 bpd, up from 419,000 bpd in January. That figure also included 10,000 bpd taken through Jordan by truck.

The bulk of the exports, averaging 1.708 million bpd, were shipped from the southern oil hub of Basra (pictured), he added.

Iraq sold its crude oil at an average price of $97 to $98 a barrel in February, compared with an average of $90.78 a barrel in the previous month. That means Iraq would earn $6 billion to $6.042 billion. In January Iraq earned $6.082 billion the highest in a year.

Iraq’s oil production was 2.7 million bpd in January, the first time it has reached that level in 20 years as investment increased and violence dropped.

Iraqi Kurdistan resumed oil exports last month following a halt in 2009 due to a long-standing dispute with the central government in Baghdad over the legality of contracts it signed with foreign oil companies.

Exports from fields in the semi-autonomous northern Kurdish region reached 60,000-70,000 bpd last month.

(Sources:  Reuters, Associated Press)

43 Responses to Iraq Oil Exports Up Again in Feb

  1. junior March 4, 2011 at 8:31 pm #

    whats happening to the dinars?????

  2. t rich March 7, 2011 at 11:18 am #

    Wow gas price going up,, Bpd are being pumped out more.. And we don’t get any price cuts or profit from the price increase.. So whey is this news??? Some of us has a hard time to fill up a gas tank now a days… But let the oil rich countries get richer,fine with me.. (not) Again what is going on with the DINARS???? Anybody read if the RV changed ???

  3. PIp March 9, 2011 at 8:46 pm #

    Remember Iraq is just starting to rebuild it’s economy. I will take a few years to get the investment community worldwide to accept and consider the dinar as a viable investment. The next step will have to be the currency exchange markets. Once accepted and traded then the value will be traded and purchased accordingly to the bid and ask price of the currency worldwide. That is what dictates the markets. The foreign investment has only begun in the last year or so.

  4. junior March 10, 2011 at 12:29 am #

    with to day pumps prices everyone needs help with the oil in other countries getting richer why dont they RV THE DINARS????????

  5. Young Choe March 13, 2011 at 6:18 pm #

    I did buy $6,000.00(USD) worth Dinar couple months ago and because I heard that there will be RV very soon and we all will be receiving millions in USD. We do not know what the rate will be when RV is placed and also we want to know when will we be able to receive the US dollars.
    Please send me E-Mail to the following E-Mail address;
    [email protected] as soon as you possibly can.
    Please keep me inform and I thank you very much.
    God Bless you and your family.

  6. Ronald March 15, 2011 at 2:18 pm #

    Why can’t we buy oil with the dinars that we are buying at a low price.
    this way they will see the dinars value and they might up the value of the dinar. Duh win win on both sides.

  7. ron March 23, 2011 at 6:29 am #

    anyone know why we have not heard the latest news since march 3rd?

  8. joe March 24, 2011 at 5:37 pm #

    go rv go!!!!!

  9. Pip March 25, 2011 at 9:08 am #

    Doesn’t matter what the price of oil is….Oil will probably go to $120 this summer, the futures and perceived supply and demand alone control the price of oil.
    The currency has no bearing on that.The proposed RV once again will not likely happen until economic conditions improve, foreign investment improves, AND the currency is traded on the world exchange.

  10. Stew March 25, 2011 at 3:28 pm #

    The proposed RV will NEVER happen. ZERO chance of it. Buy lottery tickets, at least there is a one in 40some million chance you’ll win. Those odds are infinitely better than the dinar RVing big like people think, because the chance of that is absolute zero.

  11. Stamp March 26, 2011 at 10:34 pm #

    Stew, you are so sure of yourself, of the RV not happening.

    Wouldn’t the Iraqi people deserve to have a reasonably fair foreign currency exchange for their IQD since the country is sitting under huge oil reservoirs?

    And it is an open secret that the Americans would never set their foot (albeit mercilessly) in Iraq if that did not benefit them, economically. The Americans did not to war with the previous Iraqi regime for charity. Everyone knows that.

  12. Stew March 27, 2011 at 8:56 am #

    Stamp… they have way too much currency to RV like people think.

    They have announced they want to delete 3 zeros. That will take the money supply numbers from trillions back to billions. They will do that by issuing a new currency and 1000 old will be turned in for 1 new. That new dinar will have a value of 85 cents per dinar. They will then have a currency with a “reasonably fair foreign currency exchange”.

    Simple as that. If they don’t do that then the dinar will stay basically where it is.

  13. ron March 28, 2011 at 6:20 am #

    stew–if this is true and they dropped 3 zeros which would make it 85 cents to one dinar, that would make my 6 million dinars worth over 5 million dollars. sounds good to me.

  14. Stew March 28, 2011 at 6:50 am #

    Sorry Ron… you missed the part where you have to give 1000 of the dinar you have now to get 1 of the new dinar. A redenomination is a revenue neutral event. No gain no loss. 3 zeros come of the exchange rate but you end up with 3 zeros less currency also.
    Your problem… I assume you have dinar here in the States. How do you think you’re going to do the exchange? Banks are not going to do it. Dinar deales might do it for you, but they will rake you over the coals to do it. You are probably going to lose anywhere from 40 to 100% of your money.

  15. Stew March 28, 2011 at 2:22 pm #

    Latest straight from the IMF….

    http://www.imf.org/external/pubs/ft/scr/2011/cr1175.pdf

    15. The CBI will continue to aim at keeping inflation low, predominantly by maintaining a stable exchange rate. The low level and the relative stability of inflation do not suggest any significant over- or undervaluation of the Iraqi dinar.

    Currency issued: 27.843 Trillion,
    Projected to be 31.328 Trillion by the end of 2011.

    So here the IMF and Iraq are stating they want to maintain a stable exchange rate. They also state that with the current conditions the dinar is neither over or under valued.
    They also state currency in circulation is 27 Trillion dinar.
    Anyone telling you anything other than this is a scam artist trying to steal your money.
    There is absolutely nothing that would make one think the dinar will RV 100,000 % as these crooks claim.
    A simple redenomination/lop makes perfect sense.

  16. Jim T March 28, 2011 at 8:44 pm #

    Lets see what ole Stew has to say bout this, I don’t doubt your intelligence Stew, just your common sense. This investment is as good as any penny stock out there, it is in fact a long term investment not a 1 day lottery ticket. If I am a betting man, I would bet you have IQD also.
    http://currencynewshound.wordpress.com/2011/03/28/researchers-at-mustansiriya-univ-assert-that-the-cost-of-lifting-the-zeros-from-the-currency-of-the-largest-utility/

  17. Jim T March 28, 2011 at 9:04 pm #

    Kind of interested on what your interpetation is on this Stew?

    14. Progress has been made in moving toward accepting the obligations of Article VIII,
    Sections 2(a), 3, and 4, of the IMF’s Articles of Agreement. We have worked with IMF staff
    to complete the review of exchange laws and regulations and are considering measures to
    remove the identified exchange restrictions on current international transactions. We remain committed to avoid imposing any restrictions on the making of payments and transfers for
    current international transactions or introducing any multiple currency practices.

    This from the same publication you posted earlier

    http://www.imf.org/external/pubs/ft/scr/2011/cr1175.pdf

  18. Jim T March 28, 2011 at 9:15 pm #

    I would also like to hear your opinion as to why the U.S. Treasury as just imposed these new laws.

    5. Per US Treasury Department directives, wires can only be sent to the individual exchanging the Dinar and the bank account must be in that person’s name.
    6. Per US Treasury Department directives, wires can only be sent internationally if the individual making the exchange is a citizen of that country and the account is in the customer’s name.
    7. Exchanges to trusts must be initiated by the trust’s administrator. (Trustee).
    8. Per US Treasury Department directives, Dinar exchanges must convert to US dollars in the customer’s name prior to any purchase of precious metals or other commodities.

  19. Stamp March 28, 2011 at 11:55 pm #

    A stable exchange rate could also mean a fixed-exchange rate regime, after redomination?

  20. Stew March 29, 2011 at 7:55 am #

    Not sure what your saying Stamp. They have been at 1170 now for about 2 years. So they currently have a fixed rate. After the redenomination/lop… yes they will still have a fixed exchane rate. They could do a managed float… which is a fixed rate that they allow to float whithin a very small range.

    They have been saying for years that they plan on keeping the rate stable.
    Dinar pumping scammers have been saying for years they will RV the currency 100,000%. Thaqt would be the exact opposite of a stable rate.
    Who’s been lying for years? Who do you think is telling the truth about the future?

  21. sam March 29, 2011 at 8:41 am #

    Stew you seem to be a doom and gloom kind of guy. I for one have confidence that Iraq’s Dinar will be the same value as their neighbors are. ie Kuwait. It is just a matter of time things seem to move slow in the ME. AS far as the lop they have been talking about that for some time but it will not affect the Dinar that is in circulation, people will not hold worthless IQD. Since so many countries own IQD I dont think they will be left with a bunch of ugly wallpaper and neither will us who own it. Thanks

  22. Stew March 29, 2011 at 9:47 am #

    What will the lop effect if not currency in circulation? Cuz that’s exactly what a lop is for… to reduce money supply/currency in circulation.

    Can you show me some proof that one single country owns any dinar at all? No… you can’t because they don’t. Why would any country want to hold dinar? That’s all made up scammer fantasy.

    Iraq has 27 Trillion dinar in circulation at a rate of $.00085 per dinar. So the value of the Iraqi dinar is 23 Billion dollars.

    Kuwait has 1 Billion dinar in circulation at a rate of $3.50 per dinar. So the value of the Kuwaiti dinar is 3.5 Billion dollars.

    So the Iraqi dinar is already 6.5 times more valuable than the Kuwaiti dinar.

  23. Stew March 29, 2011 at 1:26 pm #

    I find it funny you call me a doom and gloom person based off one thing, because I don’t believe in a fantasy RV that is based on nothing but lies and falsehoods.

    The dinar community is made up of 95% Pollyanna’s and the other 5% are just plain crooks that should be in jail.

  24. ron March 29, 2011 at 2:57 pm #

    still no latest news on iraq. march 3rd was the last news. normally its been about twice a week. stew, since you know so much,and you live there, why no news?

  25. Stew March 29, 2011 at 3:41 pm #

    LOL… what news are you talking about Ron? There’s news out of Iraq every day.

    http://news.search.yahoo.com/search/news?p=iraq+&toggle=1&cop=mss&ei=UTF-8&fr=yfp-t-701

  26. Stamp March 29, 2011 at 5:02 pm #

    I feel that it does not benefit Iraq to join the WTO and start to trade with the rest of the world, while having its currency exchange rate at 1170 1QD = 1 USD. The IQD must be ‘revaluated’ or ‘redominated’ or whatever term that they plan to use.

    My guess is that the lowest ‘redominated’ IQD rate to USD won’t be lower than the lowest foreign exchange rate amongst the gulf countries and the neigbouring countries. 1 IQD = USD 0.27?

    Stew, besides doing an LOP, there must be another way(s) to pull back the large IQD notes from circulation.

  27. Stew March 29, 2011 at 5:54 pm #

    Iran is a gulf neighbor and their rate is 9000:1. Why don’t the pumpers talk about them?

    This argument that Iraq has to have a higher valued currency to do business with makes no sense. It’s a nonsense sentence that is made up by dinar pumpers that has no basis in fact.
    Italy is a perfect example. Italy had a rate of 1600:1 for years and years before they switched to the Euro. During that time Italy had a GDP in the top 5 in the world.
    Japan has been around 100:1 for years and they are a world economic power.

    This whole notion that Iraq and Iraqis are poor because of the exchange rate is silly.
    Here’s a good analogy for you.
    Let’s use post-it-notes as currency. I’ve got some yellow ones and some blue ones. Let’s say the yellows are worth $1 and the blues are worth $100.
    I give you 2 Blue ones and I give your neighbor 1000 yellow ones.
    Are you going to be happy because your blue post-its are worth much much more than your neighbors yellow post-its?
    I gave him $1000 and I only gave you $200. Do you think he’s mad?
    The whole point you guys are missing is that the value of a countries currency is not just about the exchange rate. Just as in the example I gave above. You have to take into account how much currency they have too. How much one bill is worth compared to another bill means nothing unless you know haw many of each one of the bills you have.
    The Iraq Kuwait comparison that I posted above is perfect. Even though Iraqs exchange rate per dinar is tiny compered to Kuwait. Iraq has 27000 times more currency than Kuwait does. So in reality. Iraqs currency is more valuable the Kuwaits.
    Iraq has a MASSIVE amount of currency for as small an economy as they have. That’s why the rate is perfectly fine where it is.
    A 3 zero lop removes 99.9% of the currency. I can think of no other way possible to remove that high a percentage of currency… just lop.
    A lot of people bought dinar back in 2004/2005 and thought it might go back to a penny. Once the money supply numbers were discovered, they realized it was a scam and sold off. Some bought Iraqi CDs for a good return. Some got into the ISX. The only thing left in cash dinar land are scammers and Pollyanna’s

  28. Stew March 29, 2011 at 6:02 pm #

    Think about this way. A 1967 427 AC Cobra is worth a ton of money if you can find one in great shape. They’re pretty rare. How much do you think they would cost if there were 27 Trillion of them floating around in great shape?

  29. Stamp March 29, 2011 at 7:34 pm #

    Stew, how would you explain the IQD exchange rate to USD prior to the second gulf war (or rather invasion of Iraq)?

    Was it artificially fixed by Saddam government?

  30. Stew March 30, 2011 at 9:40 am #

    Stamp… The exchange rate for the dinar prior to the war was basically this. Saddam took over Iraq in 1979. At that time Iraq had a legitimate $3 per one dinar exchange rate. They had a money supply of about 20 Billion dinar and they held about $60 billion in foreign currency reserves to back it up. Notice: 3 times more reserves than dinar… so $3 rate was fine. At this time the only dinar in Iraq was the Swiss dinar. The Saddam dinars did not exist yet.
    Now then… in 1980 Saddam took Iraq to war with Iran which lasted until 1989 and then in 1990 he invaded Kuwait. During this time Saddam took the $60 billion in FX reserves and spent it on war and himself. That started the downfall of the dinar exchange rate. With no reserves to back it the value fell to about 10 cents per dinar by 1990. The official rate remained $3 by Saddam’s decree, but that rate was honored nowhere. The actual rate was 10 cents.
    After Saddam spent all the FX reserves, he started printing his own currency. The Saddam dinars. Saddam dinar were never worth $3. They came along much later.
    Saddam printed up Trillions of Saddam dinar. So many that when the new dinar was introduced in 2004 they pulled 4.5 Trillion Saddam dinar from circulation.
    So with practically no FX reserves and 4.5 Trillion dinar, the value had sunk all the way to 3000:1 in 2003. Saddam still claimed an official rate of $3… it was laughed at by the world.
    The new dinar was introduced and as FX reserves were built back up the rate stabilized at where it is today. Iraq has continued increase it’s money supply to approximately 60 Trillion dinar today. They have proportionally increased the FX reserves at the same rate… maintaining a stable exchange rate. The Central Bank has about $50 Billion in FX assets… therefore the rate is a little over 1000:1.

    Bottom line. Iraq can go back to the good old rate in one way and one way only. And that’s a lop. They have to return the current 60 Trillion money supply number back to 60 billion (lop 3 zeros) and then a rate of about 1:1 makes perfect sense.

  31. Hellooooo April 2, 2011 at 8:29 pm #

    Something to think about. Iraq is trying to become a permanent member of the World Trade Organization. In order for that to happen, they have to have a valued currency. Right now, they don’t. And so far, they have passed every step in the process to become a permanent member. (CLUE) Why would they go through the process of becoming a permanent member of the WTO, knowing that having a valued currency is a prerequisite, if they didn’t have some idea that their money would be revalued? Hmmm, just something to think about……..

  32. Stew April 3, 2011 at 4:22 pm #

    You are sadly mistaken. Obviosly lied to by dinar dealers. Vietnam joined the WTO a few years back and their exchange rate was about 15000:1 at the time.

  33. Steve April 3, 2011 at 10:28 pm #

    To Stew,

    What is your motivation in spending all of the time in typing the previous posts about the dinar revaluation to people you have never and will never meet.

    I don’t get it… your arguments are persuasive, but someone with as much intelligence and common sense as you appear to have wouldn’t likely spend all this time communicating to people you don’t even know. Where’s the intelligence and common sense in that?

    I’d really like to know what’s in it for you?

  34. emis April 17, 2011 at 5:20 pm #

    what happened to the news ,and all the chatter??,dose anybody know anything about,the Dinar? i heard there was a rv ?dose anybody know when or what ?

  35. Blondie June 7, 2011 at 6:54 pm #

    Stew, I trust you! Please provide us with an update on Dinars.

  36. Stew June 8, 2011 at 1:10 pm #

    Blondie… not a lot to update. The last 3 or 4 “delete 3 zero” redenomination articles all stated that the Central Banks plan, just the plan, not the implementation, but the plan to redenominate was almost complete and would be submitted to the ministries and parliament for approval soon. So at some point I would expect to here that the plan is 100% complete and has been submitted to the ministries and parliament. Once approved the plan can then be enacted. I keep seeing that they are having trouble getting all the ministry positions filled, so that might delay things a bit, not sure. Guess it would depend on if any of the unfilled ministry positions would have a say so on the redenomination.

    One of the big lies the pumpers keep spreading is that the “delete 3 zero” implementation is almost complete. That’s horse crap. Why would they be submitting the PLAN for approval after it has happened? Plus it’s easy to check on the CBI web site and see that they have not reduced the currency amount one single bit.

  37. Blondie June 8, 2011 at 1:23 pm #

    Stew, thank you for the update! I appreciate your honesty!

  38. Blondie June 27, 2011 at 8:53 pm #

    Stew, any new updates?

  39. Stew June 28, 2011 at 8:59 am #

    Blondie… just this week there has been a flurry of articles about the redenomination. The Central Bank advisor has come out and stated the plan is now complete and will be submitted soon. One of the interesting things stated was that they will issue a bill worth about $100 BEFORE they redenominate. So look for a 100,000 dinar note to be issued very soon. They talked about doing this before then later denied it.
    The thing is they need a larger bill. People still don’t use banks and like using cash. But it’s tough when making large purchases… appliances, cars and stuff. The 25,000 dinar is only worth about $21, so that’s a lot of bills to make a big purchase.

  40. Blondie June 28, 2011 at 9:15 pm #

    Thank you for the update!

  41. Blondie July 1, 2011 at 6:08 pm #

    Stew,
    What do you think about the latest news about DFI proceeds and release of oil revenue to Iraq? Will it affect RV? Thank you

  42. Stew July 1, 2011 at 8:14 pm #

    The release of the DFI is no big deal Blondie. It’s just another event that the pumpers have used to get people excited.
    The DFI is basically a bank account. Money from oil sales was put into it and the UN oversaw the distribution of the funds. So they had to give aproval for Iraq to spend the money. Now the UN is bowing out of the process. The oil money will still go to the fund, and Iraq will continue to spend it just as they have in the past… just now the UN is not involved in the process.
    The only thing big about this is that some people think the funds may now be subject to lawsuits. That is a bad big thing.
    It will not effect the RV because there is no RV… there will be a redenomination… a lop.

  43. Blondie July 3, 2011 at 8:56 pm #

    Stew, thank you for the update.