Iraq: Will Further Reduce Oil Production

Iraq may be forced to further reduce its oil production by more than 3 million barrels per day in the coming days if tankers are unable to transit freely through the Strait of Hormuz to loading ports. The country has already reduced production by 700,000 barrels from the Rumaila field and 460,000 barrels from the West Qurna 2 field. Disruptions to exports, due to the immobilization of tankers in the Strait of Hormuz, have brought oil reserves at Iraq's southern ports to critical levels. This situation raises concerns about Iraq's ability to continue oil exports. The production cut is a precautionary measure to avoid accumulating large stocks of oil that cannot be exported. The situation is being closely monitored by Iraqi authorities, who are considering further measures if the situation does not improve.