Iraq has more than halved production at the world’s second largest oilfield after the Islamic Revolutionary Guard Corps declared the Strait of Hormuz closed amid an escalating Iran war.
Rumaila, a 1.2 million-bpd oilfield operated by the state-owned Basra Oil Co., has cut production by 700,000 bpd due to overloaded storage, Reuters reported on Tuesday, citing Iraqi officials. That, after a chocked Strait of Hormuz has slowed the arrival of tankers for crude oil exports. Production at the West Qurna 2 oilfield has also been cut, by 460,000 bpd.
Iraq will be forced to cut its oil production by more than 3 million barrels per day in a few days if oil tankers cannot move freely through the Strait of Hormuz and reach its loading ports, the Iraqi officials said. Already, storage of crude oil has reached critical levels at Iraq’s southern ports, they said.
This is a developing story. More to come.
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