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Iraq Oil Exports Through Hormuz Reportedly Plunges to 10 Million Barrels in April

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Iraq's crude oil exports through the Strait of Hormuz reportedly slumped to 10 million barrels in April, relative to pre-war monthly levels of around 93 mmbbls, according to multiple media outlets, citing the country's oil minister Basim Mohammed Khudair.

The ongoing tensions in the Middle East have resulted in sharp declines in Iraq's oil exports, with tanker arrival falling drastically as shipping companies refused to send their vessels through, Khudair reportedly said in a press conference on Saturday.

In March, Iraq's oil shipments plunged to 18.6 mmbbls, down from February's 99 mmbbls, according to local media outlet Rudaw.

The country has reportedly utilized its alternative export route through the Kirkuk-Ceyhan oil pipeline, following an agreement with the Kurdistan Regional Government, to compensate for the lower shipments. After resuming operations in March, the pipeline's capacity has reached 200,000 barrels per day, with plans to increase flows to 500,000 b/d.

Khudair noted that this capacity expansion largely hinges on the return of international oil companies, which have mostly suspended operations, Shafaq News reported.

The oil minister, as cited by Reuters, urged energy majors Chevron (CVX), Exxon Mobil (XOM), and Halliburton (HAL) to expedite signing of contracts for oil and gas projects, currently under negotiations, to secure revenue for Iraq.

The government was also reportedly discussing with Turkey to expand their previous crude export deal to cover both upstream and downstream sectors.

Iraq plans to increase its production capacity to 5 million barrels per day, while also raising its export capacity. The country will engage with the Organization of the Petroleum Exporting Countries to support this objective, the news agencies said.

Two Iraqi officials told Reuters in April that Iraq has no plans to exit OPEC.

has reached out to OPEC and Iraq's Oil Ministry seeking feedback.

Due to the persisting conflict in the Middle East, Iraq's crude oil production has declined to 1.7 mmbbls/d in March and 1.4 mmbbls/d in April, compared with 4.2 mmbbls/d in February, according to OPEC data.

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Weekly US Natural Gas Posts Gains on Warm Weather Forecasts Despite Soft Demand

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$BKR
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Commodities

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$PCG