Iraq's Oil Exports Through Hormuz Decline

Iraq exported 10 million barrels of oil through the Strait of Hormuz in April, a significant reduction from approximately 93 million barrels monthly prior to the Iran war. This information was provided by Iraq's new Oil Minister, Basim Mohammed, during a press conference on Saturday. The decline is attributed to the closure of the Strait of Hormuz, which has impacted oil exports from several regional producers and led to increased insurance costs for oil tankers.

Currently, Iraq produces 1.4 million barrels per day. The country resumed crude exports via the Kirkuk–Ceyhan oil pipeline in March, following an agreement between Baghdad and the Kurdistan Regional Government. Iraq aims to increase exports through the Turkish Ceyhan port from 200,000 barrels to 500,000 barrels.

Baghdad is also engaged in discussions with Ankara for a new cooperation agreement encompassing upstream and downstream projects, expanding beyond crude exports. Additionally, Iraq is negotiating with U.S. companies, including Chevron, ExxonMobil, and Halliburton, to develop oil and gas projects. The country plans to collaborate with OPEC to enhance its production and export capacity, targeting a production capacity of 5 million barrels per day, while affirming its commitment to remaining within OPEC and OPEC+.