Iraq Oil Output Looks to Exceeds Iran – First Time In 24 Years

Iraq is pumping out oil at the highest rate since Saddam Hussein’s era. This production is being led by foreign partners like Exxon Mobil and British Petrolium. They are developing new oil fields and renovating older wells.

The country produced 3.03 million barrels a day in April, 7.7 percent more than in March, while Iranian production declined to 3.2 million barrels a day, according to OPEC. Iraq’s output last surpassed Iran’s in 1988, after the countries ended their brutal eight-year war.

Iraq isn’t finished yet, and is seeking to still double oil output by 2015. Soon Iraq will overtake Iran as OPEC’s second-largest producer as sanctions cripple crude production in Iran.

With rising oil production from Libya and Saudi Arabia, Iraq’s recovery is helping alleviate concern that a European Union blockage on Iranian oil in July will squeeze and constrict global supply. Tensions over Iran’s nuclear program and the prospect of embargos on its oil exports pushed Brent crude to a 3½ year high of $128.40 a barrel on March 1. Brent Crude Oil fell as low as $111.40 today.

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