ERBIL, Kurdistan Region — A financial advisor to Iraqi Prime Minister Mustafa al-Kadhimi said on Thursday that nearly half of the country’s oil exports go to China, which is now the number one market for Iraqi oil.
“China is the first market for the Iraqi oil exports, and it alone consumes about 40-44 percent of Iraqi oil exports, with about 800,000 barrels of oil per day,” Mazhar Mohammed Salih told state media.
"A small portion of these exports is the dues of oil service contracts for Chinese companies operating in Iraq, to which 100,000 barrels per day were recently added,” he added.
The Iraqi government is dependent on oil revenues to cover its costs and pay the salaries of civil servants. Record low oil prices during the pandemic last year caused a financial crisis in Iraq, but a recent boost in oil markets and the central bank’s decision in December to devalue dinar against the dollar have eased the crisis.
According to the oil ministry’s latest monthly report, Iraq exported 86.7 million barrels of oil in June, with an average daily export of 2.9 million barrels. The exports brought in $6.1 billion, selling at around $70 per barrel.
