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Iraq Oil Exports Hit Record Low Amid Strait Closure
16 May
Summary
- Iraq's April oil exports via the Strait of Hormuz were only 10 million barrels.
- Insurance issues prevent oil tankers from entering due to Iran war tensions.
- Iraq aims to increase production capacity to 5 million barrels per day.
Iraq's oil exports via the Strait of Hormuz saw a drastic decline in April, with only 10 million barrels shipped, a sharp decrease from previous months. New Oil Minister Basim Mohammed stated that insurance concerns stemming from the Iran war are preventing oil tankers from entering, effectively halting significant exports.
Despite these challenges, Iraq is producing 1.4 million barrels per day and has resumed crude exports through the Kirkuk-Ceyhan pipeline to Turkey, with plans to increase this to 500,000 barrels daily. The minister is also negotiating with U.S. companies like Chevron and ExxonMobil for oil and gas project development.
Furthermore, Iraq is engaging with OPEC to enhance its production and export capabilities, with an ambitious target of reaching a 5 million barrels per day production capacity. Baghdad reaffirms its commitment to OPEC and OPEC+ to ensure stable oil prices.
