November 15-2013
Iraq says China wants to boost its buys of Iraqi crude by more than two-thirds next year, a step that could mean a severe loss in Iran’s biggest remaining market.
In recent months, China has bought half of all the crude that Iran has been able to export.
“Iraq is in a lucky position because we always get more requests than we can actually supply,” Deputy Prime Minister for Energy Hussain Ash-Shahristani said last Wednesday at the World Energy Congress in South Korea.
China is seeking 850,000 barrels per day (bpd) of crude from Iraq next year, Shahristani said. The energy minister also said he expects more requests for 2014 supply from China.
Baghdad currently has an annual term deal to sell about 500,000 bpd into China this year and Iran has been averaging about 500,000 barrels a day. Saudi Arabia shipped 1.08 million bpd of crude to China in the first eight months of this year.
Iraq’s current crude output is now back up to 3.3 million bpd, and may touch 3.5 million bpd by year-end.
Exports fell to 2 million bpd in September, the lowest rate in 19 months, as terminal repair and expansion work reduced shipments of Basra Light crude, which accounts for most of Baghdad’s export revenue.
