Iraqi oil production plunges significantly due to conflict and transportation disruptions, with output from major southern fields down by about 80%

BlockBeats News, March 25th, an official from the Iraqi Ministry of Energy stated that due to the ongoing Iran war, combined with crude oil storage near full capacity and transport disruption at the Strait of Hormuz, the country's oil production has continued to significantly decline.

Data shows that production from major oil fields in southern Iraq has further dropped by about 80%, to around 800,000 barrels per day; whereas earlier this month, the region's production had already fallen from a pre-war level of around 4.3 million barrels per day to 1.3 million barrels per day. To address storage pressure and export bottlenecks, Iraq has decided to further cut production starting from Tuesday.

In addition, the Iraqi authorities have requested BP to reduce production at the Rumaila oil field from around 450,000 barrels per day to 350,000 barrels per day; and have also asked Eni to cut production at the Zubair oil field from 330,000 barrels per day to 260,000 barrels per day.