US EditionIraq’s Oil Output Plunges 70% as Gulf Shipping Crisis Deepens
Iraq's oil output dropped 70% to 1.3 million barrels per day as exports halt due to Strait of Hormuz closure amid US-Israeli conflict, impacting national revenue.
- On Sunday, Iraq's three main southern oilfields cut output by 70% to 1.3 million barrels per day, down from 4.3 million barrels per day before the war.
- Amid the US-Israeli offensive on Iran, shipping fears have left tankers unwilling to transit the Strait of Hormuz, causing Gulf producers to cut output due to storage capacity at Gulf terminals filling up this past week.
- Exports fell to around 800,000 barrels per day with only two tankers loading, and with no new tankers able to reach Iraq's southern export terminals, exports were expected to halt at 1700 GMT.
- Crude oil prices surged to $100 per barrel on Sunday, straining Iraq's public finances as crude supports nearly all public spending and more than 90% of state income.
- About 20% of the world's oil consumption passes through the Strait of Hormuz, and G7 finance ministers are considering coordinated reserve releases this week to ease price pressure.
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Baghdad. Iraqi oil production from its main deposits in the south of the country has fallen 70 percent, to 1.3 million barrels per day, as Iraq cannot export oil through the Strait of Ormuz due to the war with Iran, three sources of the sector reported.
Oil passes $100 a barrel following Strait of Hormuz blockage and Middle East war
The blockage of the Strait of Hormuz is forcing Persian Gulf countries to reduce their crude oil production. G7 leaders are considering jointly releasing their strategic reserves to supply the markets.
Today's surge didn't just hit energy markets. Asian stock markets plunged deep into the red at the opening, and investors are increasingly concerned that a prolonged blockade of the Strait of Hormuz could trigger a broader wave of price hikes and a new blow to the global economy.
Iraq’s Oil Output Plunges 70% as Gulf Shipping Crisis Deepens
Crude oil production from Iraq’s southern fields has dropped by 70% since the start of the U.S. and Israeli war on Iran, with the average daily production at 1.3 million barrels, compared with 4.3 million barrels daily before the war began. “Crude storage has reached maximum capacity, and the remaining output after the major cut will be used to supply the country's refineries,” an official from Basra Oil Company told Reuters. The company is the …
Iraq's oil production in the main oil fields in the south of the country dropped by about 70%, reaching only 1.3 million barrels per day, as exports through the Ormuz Stream were affected by the war with Iran, declared on Sunday three sources of industry, Reuters.
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