By Srinivas Chowdary Sunkara//petrobazaar//3rd May, 2017
Fuel Oil is a by product of crude oil refining. Straight run fuel oil (SRFO) is the high quality variant of fuel oil and it can be further processed into higher value gasoline and diesel. Lower quality fuel oils are used in large marine vessels and power plants.
Iraq is the second largest producer in OPEC and holds world's fourth largest oil reserves to the tune of 153.1 billion barrels. Iraq's oil revenues make up nearly 95 percent of the budget who agreed unwillingly to reduce crude output by 210000 barrels per day as a part of production cut agreement and stood at nearly 98 percent compliance rate.
Fuel Oil Exports
As per the compiled data by Thomson Reuters Oil Research, Iraq exported fuel oil on an average of 80000 to 160,000 tonnes per month in 2016. According to latest Reuters data, fuel oil exports reached more than 500,000 tonnes in March alone. It was noted that some of the high grade fuel oil had also been shipped to the U.S. Iraq's swelling fuel oil exports have contributed to a glut and premiums on fuel oil prices came under pressure in the first quarter as inventories hit a near eight-month high.
The Iraqis are finding the way out to maintain revenues through boosting of refined product exports.