The current production level is far below Iraq’s usual output. Before the crisis affected tanker movement through the Strait of Hormuz, the country was producing slightly more than 4 million barrels per day, according to recent figures from the Organization of the Petroleum Exporting Countries (OPEC), News.Az reports, citing foreign media.
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Officials say the sharp drop in production is not due to a shortage of oil reserves but because Iraq is struggling to transport its crude to international markets.
With most maritime routes in the Gulf affected by the conflict, Iraq has been forced to rely on limited alternatives. The oil minister said around 200,000 barrels of crude are currently being transported each day by trucks through neighbouring countries, including Türkiye, Syria and Jordan. However, these routes handle only a small portion of Iraq’s usual export volumes.
Most of Iraq’s oil is produced in its southern fields and normally exported through terminals located along the Gulf coast.
With shipping traffic in the area severely disrupted, production from these southern oilfields has reportedly fallen by about 70 percent.
The situation is creating serious financial pressure for the Iraqi government. Oil exports provide more than 90 percent of the country’s state revenue and fund much of its public spending. A long-term disruption could therefore place significant strain on Iraq’s already fragile economy.
To manage the crisis, Baghdad is exploring alternative export options. The oil ministry has asked the Kurdistan Regional Government to increase production from the Kirkuk fields and send at least 100,000 barrels per day northwards through the pipeline that runs to Turkey’s Ceyhan port.
