Iraqi oil exports have fallen by 70% due to the war and the closure of the Strait of Hormuz.
Iraqi oil exports saw a significant decline during the past week, amid escalating regional tensions, the ongoing US-Iranian war, and the near-total closure of the Strait of Hormuz, which has broadly affected oil flows from the Middle East region.
According to data from Kpler, Iraq’s average exports of crude oil, condensates and refined fuels averaged around 0.78 million barrels per day, a decrease of nearly 70% compared to February, as a result of the halt of most maritime shipments and difficulties in transporting goods through ports.
The company’s data showed that oil exports from eight major Middle Eastern countries (Saudi Arabia, Kuwait, Iran, Iraq, Oman, Qatar, Bahrain, and the United Arab Emirates) fell significantly, with average exports to these countries reaching 9.71 million barrels per day, a decrease of 61% compared to 25.13 million barrels per day in February.
Iraq recorded a decrease of about 70%, the UAE more than 50%, and Saudi Arabia 20%, while exports from Iran, Oman, Kuwait, Qatar and Bahrain declined at varying, lower rates, with some limited flows continuing through the Red Sea and other ports.
The actual closure of the Strait of Hormuz would cause a major disruption to global supplies, as this sea lane is used to transport about one-fifth of the world’s oil.
Floating crude oil stocks in the region have risen to more than 50 million barrels, compared to about 10 million barrels before the outbreak of the war.
It is estimated that oil flows are currently limited through the Saudi Red Sea and the ports of Oman, the UAE and Iran, while analysts expect the impact of regional tension on global oil prices to continue in the coming period, with the possibility of some types of fuel reaching record levels.
Shafaq.com