Iraq Slashes Oil Output Amid Strait of Hormuz Disruptions
Oil production in Iraq has been significantly reduced due to the ongoing Iran crisis. According to Iraqi oil officials, the country has cut output by nearly 1.5 million barrels per day (bpd), with more cuts expected if disruptions at the Strait of Hormuz persist.
The officials stated that Iraq's production cuts could widen to over 3 million bpd within days as storage levels in southern ports have reached critical levels due to export disruptions.
The oil field of Rumaila has seen a cut of 700,000 bpd, while West Qurna 2 and Maysan fields have been reduced by 460,000 bpd and 325,000 bpd, respectively. Iraq's January production averaged around 4 million bpd.
The Strait of Hormuz is a critical artery for global oil supply, accounting for about 20% of the world's total oil and liquefied natural gas exports. The U.S.-Israeli war with Iran has halted energy exports from the Middle East, leading to production stoppages in countries including Qatar and Iraq.