JP Morgan expects Iraqi oil production rise

Azerbaijan, Baku, May 30 / Trend A.Badalova /

Iraq's oil production will increase to 3.4 million barrels per day in the fourth quarter of 2012 compared to 2.8 million barrels in the first quarter of this year, the analysts of the large U.S. bank JP Morgan predict.

According to the JP Morgan's Global Commodities Research, through 2011, Iraq's Basrah Light exports had been constrained at around 1.7 to 1.8 million barrels per day, but quickly ramped up with the recent commissioning of the second terminal.

"We have since seen exports vary quite a bit on a weekly basis, but the trend is certainly upwards, and Iraq has covered a large part of Iran's reduction in exports," JP Morgan's analysts said.

This week Bloomberg reported that Iraq will reduce its daily exports of Basrah Light crude from the Persian Gulf by about 300,000 barrels per day (15 percent) to 2.14 million barrels per day in the first half of June compared to 2.53 million barrels per day in the second half of May.

According to BP, the proven oil reserves in Iraq as of early 2011 amounted to 115 billion barrels, which makes the country the third after Saudi Arabia and Iran.

Major oil fields of Iraq are Rumaila, Zubair, Nahr Umr, Majnoon and West Qurna in south of the country. Some 80 per cent of oil produced in the country is exported. Iraq supplies oil to Jordan, Turkey and Syria.

In April, Iraq increased its oil exports up to 2.508 million barrels per day which is the highest figure since 1989.