Iraq earned nearly $1 billion more in 2024 over the previous year despite a decline in average crude prices last year, official data show.

The crude export earnings of OPEC’s second largest oil producer stood at around $95.5 billion in 2024 against $94.4 billion in 2023, the Central Bank of Iraq said.

The report gave no reason for the rise but according to the Kuwaiti-based Arab Energy Organisation (AEO), Iraq exported around 3.35 million barrels per day (mbpd) in 2024, slightly higher than in 2023, when exports stood at nearly 3.34 mbpd.

Average Brent crude prices stood at around $81 a barrel in 2024 compared with nearly $83 in 2023, according to the US Energy Information Administration.

Iraq’s oil revenues soared to one of their highest levels of around $113 billion in 2022, when crude prices soared above $100.

The surge allowed Iraq to record a large budget surplus despite high spending in 2022, enabling it to ease borrowing from the local banks.

An adviser to Prime Minister Mohammed Al-Sudani said last week Baghdad intends to borrow again this year to fund the budget shortfall after oil prices dipped below Iraq’s forecast price of around $70.

“The 2025 budget envisages a deficit of 64 million Iraqi dinars while spending was forecast at IQD200 trillion ($153 billion)…the Finance Ministry will resort to borrowing whenever needed to cover the deficit,” financial adviser Mudhar Saleh said.

In June 2023, Iraq approved a three-year budget for the period 2023-2025 based on an average oil price of $70 a barrel and crude exports of 3.4 million bpd.

Annual spending was set at around $153 billion with a shortfall of $49 billion but Parliament allowed the Finance Ministry to revise expenditure through the year depending on oil market conditions.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.