Fresh worries about the worldwide energy supply have been raised as Iraq’s crude oil output has plummeted following disturbances in the Strait of Hormuz that slowed exports from the country’s main southern oil terminals.
According to industry sources, output from Iraq’s main southern oilfields has dropped to about 1.3 million barrels per day, a steep decrease from the roughly 4.3 million barrels produced per day prior to the escalation of Gulf tensions.
The steep fall results from shipping limitations in the strategic channel that prevent tankers from flowing freely, thereby creating major export bottlenecks.
Officials claim the nation is currently short on storage space, which is causing authorities to cut back on manufacturing. Already overflowing storage facilities are redirecting much of the leftover crude to home refineries instead of foreign ones.
Only two oil tankers loaded crude at Iraq’s southern export terminals over the weekend, each carrying roughly two million barrels before departing; The News Chronicle understands. Effective slowing of Iraqi crude to world markets and highlighting the increasing stress on the nation’s energy infrastructure meant that no further ships subsequently arrived.
Over 90 percent of Iraqi government income comes from oil exports, still the backbone of the country’s economy. The disruption is related to escalating Middle Eastern tensions and security issues in the Strait of Hormuz, a key shipping route that transports about one-fifth of the world’s oil and liquefied natural gas, leading to significant delays and increased shipping costs for Iraqi crude oil exports.
