REUTERS
Iraq aims to export a record volume of Basra crude from its southern terminals in October as it ramps up production, adding to a global oil supply glut, according to CNBC.
The oil surplus combined with weakening demand has depressed global crude prices and pitted members of the Organization of the Petroleum Exporting Countries (OPEC) against each other in a battle for market share, the report says.
Iraq, the largest OPEC producer after Saudi Arabia, plans to export 3.68 million barrels per day (bpd) of Basra crude, traders said on Monday, citing a preliminary loading program.
The volume, if realized, would beat a previous monthly record of 3.064 million bpd set in July
Read alsoIran to compete with Russia in gas exports to EU by 2030Iraq's decision to split its output into two grades, Basra Heavy and Basra Light, resolved quality issues, enabling the producer to ramp up output, industry sources said.
However, the country tends to allocate more volumes than it can supply each month to avoid disrupting production as it has limited storage capacity to keep excess oil, one industry source familiar with the matter said.
Read alsoOil extends decline as Russia rejects deal with OPEC on outputIraq is unlikely to export more than 2.35 million bpd of Basra Light in October while the volume of Basra Heavy would not exceed 850,000 bpd, he said.
Some of the October cargoes are also expected to be lifted in November instead, according to the source.