Exclusive: Iraq oil output further plunges as storage fills, Hormuz exports blocked by conflict

Core Insights - Iraqi oil production has significantly decreased due to the ongoing conflict in Iran, with storage tanks reaching critical levels and exports via the Strait of Hormuz halted [1][5]. Production Decline - Output from Iraq's main southern oilfields has dropped by approximately 80%, now at around 800,000 barrels per day (bpd), down from about 1.3 million bpd earlier this month [2][5]. - Prior to the conflict, production from these fields was around 4.3 million bpd [2]. Production Cuts - Iraq has implemented further production cuts, requesting BP to reduce output from the Rumaila oilfield by 100,000 bpd to approximately 350,000 bpd, and asking Eni to cut production from the Zubair field by 70,000 bpd from 330,000 bpd [3][4]. - An official letter from the Basrah Oil Company confirmed the reduction in production due to high storage levels [4]. Future Outlook - Iraqi energy officials have indicated that additional production cuts may be necessary if the situation in the Strait of Hormuz does not improve [5].