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Market Chatter: Iraq to Triple Northern Pipeline Crude Exports

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Iraq's cabinet reportedly approved a plan on Tuesday to more than triple northern pipeline exports through Turkey's Ceyhan port to 770,000 bpd, Bloomberg reported Tuesday.

The pivot comes as the OPEC nation scrambles to mitigate the severe economic damage inflicted by the blockade of the Strait of Hormuz, which has severely crippled its maritime shipping capabilities.

The strategy aims to restore national oil revenues, which account for 90% of Iraq's budget.

Under the new framework, exports will expand from a baseline of 220,000 barrels per day to 770,000 bpd within a tight two-and-a-half-month window, as per the report.

This target eclipses an earlier stop-gap proposal that capped northern pipeline flows at 500,000 bpd, building on a political breakthrough achieved in March when Baghdad and the Kurdistan Regional Government finalized terms to resume idled northern pipeline operations, as per the report.

None of the parties involved responded to' request for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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