Is Iraqi oil production increase a method of bypassing sanctions on Iranian oil?

[kshithij Sharma + 78]

Iraqi oil production has surged by 400,000 BPD to reach 4.9MBPD in 2019 August compared to the average levels of 2018 of 4.5MBPD. Such sudden boost in oil exports have very little rationale. Iraq didn't do any major investment to boost its production to this level. Iraq is not reeling under heavy balance of payment crisis. And yet, there is a sudden increase in oil production which is close to 9% of total production which is surprising.

This, however raises suspicion of whether Iraq is shipping Iranian oil by branding it as Iraqi oil. Considering the proximity of the two countries and the proximity of the oil fields of the two countries, the oil quality is likely similar and hence it is easy to brand Iranian oil as Iraqi oil and face little scrutiny over the quality difference.

[Zhong Lu + 845]

Thank you! An interesting idea and plausible.  

Edited September 12, 2019 by Zhong Lu

[Tom Kirkman + 8,860]

4 hours ago, Zhong Lu said:

Thank you! An interesting idea and plausible.  

Agreed

[wrs + 893]

Good point.  I thought I read that the Iraqis had some swaps on with Iran anyway.  Iraq ships heavy from Kirkuk to Iranian refineries and Iran ships the equivalent amount for export to Basra.  Supposedly it's an even swap but looks like more has been going to Basra than to the refineries.  Nothing the US can do about it really.

https://www.reuters.com/article/us-oil-iran-iraq-idUSKCN1IZ0QA