São Paulo – In July, Iraqi oil production reached its highest levels ever since the country was invaded by the United States, in 2003. Last month, according to information from the International Energy Agency (IEA) Iraq produced three million barrels of oil per day. The outputs of Qatar and United Arab Emirates have also increased.
In the meantime, Iranian production dropped to 2.9 million barrels per day. In July, Iraq became the second leading oil producer, after Saudi Arabia, which maintained the same average as in previous months at produced 10 million barrels a day. Oil output was also down in Libya and Angola in July.
According to information from the Financial Times, Iraqi oil production is on the rise as a result of the country’s investment in the industry. In 2008 and 2010, the Iraq signed agreements with major oil companies, such as BP and Exxon Mobil, to explore twelve fields in the south of the country. Iraq has a target of producing 12 million barrels per day by 2017.
On the other hand, Iranian production is dropping because oil exports are also declining as a result of economic sanctions imposed by the United States and the European Union. July was the month in which the embargo on Iranian oil by the European Union’s 27 countries, decided on in January, became effective. Since last month, no European country buys oil from Iran.
The country’s output, which was as high as 6 million barrels per day in the 1970s, stood at 2.9 million in July this year.
The IEA has also revised its 2012 and 2013 oil demand forecasts downwards. According to a bulletin issued on Friday, consumption will stand at 89.6 million barrels of oil per day in 2012 and 90.5 million barrels per day in 2013. The previous forecasts were 89.9 million in 2012 and 90.9 million in 2013. The main reasons for the forecast of decline in output are poor recovery of the world economy, and the reactivation of nuclear plants in Japan.
*Translated by Gabriel Pomerancblum
