Iraq’s Oil Export Dynamics: A Critical Overview of Refining Challenges
Economist Nabil Al-Marsoumi recently addressed the ongoing challenges facing Iraq in its oil export and gasoline import sectors, highlighting significant deficiencies within the country’s oil refining industry.
In his assessment, Al-Marsoumi noted that Iraq’s total oil product exports in 2024 are projected to reach approximately 12.910 million tons. This figure includes a substantial 11.548 million tons of black oil, which constitutes about 90% of total oil product exports. Conversely, during the same period, Iraq is expected to import around 2.483 million tons of gasoline—an alarming reflection of the backwardness plaguing its oil refining capabilities.
Key Insights on Refinery Production
Al-Marsoumi elaborated on the production dynamics of Iraqi refineries, indicating that black oil comprises roughly half of their output. Intriguingly, the market prices for black oil are lower than those for crude oil in the global context. Furthermore, there was an expectation from the government, following the commencement of operations at the Karbala refinery, that Iraq would achieve self-sufficiency in gasoline production. However, this goal remains elusive due to operational difficulties at the refinery and various other underlying issues.
In summary, the stark contrast between Iraq’s oil exports and its reliance on gasoline imports underscores the urgent need for advancements in the country’s refining infrastructure. As these challenges persist, it is crucial for policymakers to prioritize improvements in the sector to enhance economic stability and self-sufficiency.
