Iraq has begun cutting oil output at the giant Rumaila field — one of the country’s largest producers — because storage facilities are filling up as export routes are disrupted amid escalating Middle East tensions.
The production slowdown, linked to delays in tanker traffic through the Strait of Hormuz and rising inventory levels, reflects broader supply constraints hitting global energy markets as conflict disrupts shipping and threatens key oil flows.
The move adds pressure to crude markets already reacting to regional instability.
Iraq started shutting oil production at its biggest fields as storage tanks fill up, and is poised to shutter about 3 million barrels a day of output if the Hormuz crisis persists, according to people familiar with the operations.
OPEC’s second-biggest producer has begun closing both its BP Plc-operated Rumaila field, the nation’s biggest, and the West Qurna 2 project, the people said, asking not to be identified as the information isn’t public. […]
The oil-market’s worst fears have been realized this week after Hormuz all-but closed to shipping because of the Iran war. […]
Iran’s retaliatory strikes across the Middle East has also hit energy infrastructure across the region. Saudi Arabia earlier closed its biggest oil refinery and Qatar stopped production from the world’s largest liquefied natural gas export plant following drone attacks.
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