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Oil Prices Leap Higher as Iraq Shuts Down Production At Giant Oil Fields
Iraq shut 460,000 barrels per day at West Qurna 2 and fully stopped Rumaila's south part due to tanker shortages after the Strait of Hormuz closure, officials said.
- On Tuesday, Iraqi oil officials announced cuts at Rumaila oil field and West Qurna 2, with Rumaila's operation manager ordering a 100 percent reduction in the south part.
- Following the halt in tanker passage, Iran's Revolutionary Guards declared the Strait closed on Saturday, prompting tanker shortages and critical stockpiling at southern export terminals.
- At 09:30 EST on Tuesday, Brent crude futures jumped 7.99% to $83.95 and WTI futures rose 8.75% to $77.46 as a drone strike at the Port of Fujairah sent thick black smoke from oil storage tanks.
- Ministry sources said Iraq will divert some of its 3.5 million barrels per day to Iraq's domestic refineries, tightening seaborne crude markets as crude sales make up 90 percent of budget revenues.
- Given that nearly a quarter of seaborne oil passes through the Strait of Hormuz, a Kurdistan source told AFP most foreign oil companies have 'temporarily' halted production amid repeated attacks blamed on Iran-backed groups.
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13 Articles
13 Articles
Iraq has suspended crude oil production at the Rumaila drilling site after Iran closed the Strait of Hormuz, preventing cargo ships from passing through and causing crude oil storage facilities to near full capacity.
As the blockade of the Strait of Ormuz disrupts world maritime trade, oil production slows down in Iraq: half of one of the main oil fields will be closed, according to ministerial documents.
·France
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Coverage Details
Total News Sources13
Leaning Left2Leaning Right3Center3Last UpdatedBias Distribution38% Center, 37% Right
Bias Distribution
- 38% of the sources are Center, 37% of the sources lean Right
38% Center
L 25%
C 38%
R 37%
Factuality
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