Oil & Gas

Iraq has significantly increased its fuel oil exports in October, as domestic demand softened and supply surged, setting the country on track to break records this year, according to industry insiders and ship-tracking data. The rise in exports comes despite the country's crude oil shipments remaining stable due to production limits imposed by OPEC+ quotas. However, the surge in fuel oil exports is expected to boost Iraq's oil profits, benefiting the country’s economy as it remains the second-largest oil producer within OPEC.

The uptick in fuel oil exports is set to lower refinery input costs while simultaneously boosting global supply and alleviating high fuel prices, particularly in Asia. Reuters reported that Iraq’s fuel oil exports are on track to exceed 18 million metric tons, or approximately 380,000 barrels per day, in 2024, surpassing last year's record of over 14 million metric tons. This increase in export volume would mark the highest annual output in the country's history, underscoring the growing importance of fuel oil within Iraq's oil sector.

In October, Iraq achieved its largest-ever monthly export total, surpassing 2.15 million metric tons of fuel oil. This milestone represents a significant achievement for the country, reflecting both increased production capacity and expanded demand in global markets. The majority of Iraq’s fuel oil exports during this period were shipped to India and Singapore, two of the largest consumers of the product. This surge in fuel oil exports highlights Iraq’s role as a key player in the global energy market.

Additionally, the Iraqi Ministry of Oil confirmed that the country has been exporting 1,000 tons of jet fuel daily, with overall daily production reaching 2,500 tons. The continued growth in fuel oil exports highlights the potential for further development in Iraq's oil sector, contributing significantly to the country’s financial revenues. As Iraq’s refineries produce a range of high-purity oil derivatives, including red diesel, white oil, jet fuel, sulfur, and asphalt, the country is solidifying its position as a major supplier of oil products to global markets.