Despite an OPEC quota, output is rebounding at Basra fields and new capacity continues to come online.
Small-scale demonstrations at three oil installations raise the specter of last summer's destabilizing protest movement.
The federal government and KRG both increased their oil sales, combining for the second-highest monthly export average that Iraq has ever posted.
Khurmala Dome accounts for one-third of Iraqi Kurdistan's oil output; the federal North Oil Company, which controlled the field until 2008, is taking legal action to reclaim it.
After a period of detente following the formation of a new government, politicians are raising new complaints about federal budget payments to Kurdistan.
As populist MPs raise unsubstantiated corruption allegations around oil projects, decision makers are moving cautiously on major initiatives while they beat back political opportunists.
Production is unaffected and the security situation appears calm as ExxonMobil evacuates dozens of foreign staff from the West Qurna 1 field, following U.S. claims of threats from Iran.
Output continues to fall as state-operated fields in Basra produce 400,000 bpd below capacity.
The 50,000 bpd Kirkuk refinery is set to produce more quantities of higher-quality gasoline and naphtha, thereby reducing the fuel oil that is exported.
As the U.S. evacuates diplomatic personnel, citing threats from Iran, Iraq's oil sector and its IOC partners maintain status quo.
