• 4 minutes Natural gas is crushing wind and solar power
  • 7 minutes OPEC and Russia could discuss emergency cuts
  • 10 minutes Peak Shale Will Send Oil Prices Sky High
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 4 mins WTI are we seeing the perfect storm
  • 9 hours "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 14 hours Cheap natural gas is making it very hard to go green
  • 31 mins On Venezuela
  • 1 hour CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came back in 3 waves, Lasted 14 months and killed upward 5% World population
  • 18 hours Oil and gas producers fire back at Democratic presidential candidates.
  • 4 hours I Love Hills
  • 21 hours Saudi Aramco launches largest shale gas development outside U.S.
  • 17 hours Investments worthy in versatile and clean natural gas
  • 1 day Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 1 day CDC covid19 coverup?
Alt Text

China’s Emissions Are Plunging, But It Might Not Last

China’s carbon emissions are plunging…

Alt Text

Oil Prices In Freefall As Pandemic Fears Grow

Oil prices continued plunging for…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

How Vulnerable Is Iraqi Oil Production?

Just as Iraq has increased its crude oil production and export capacity over the past decade, the recent flare-up of tensions in the Middle East suggest that OPEC’s second-largest oil producer could become a “vulnerable supplier,” the International Energy Agency (IEA) said in its January Oil Market Report on Thursday.

Early this month, the U.S. killed Iran’s most powerful and visible military leader, Qassem Soleimani, at the Baghdad airport in Iraq.  

Retaliation from Iran came several days later, when Tehran fired missiles at bases in Iraq that host U.S. troops, sending oil prices up by 4 percent for a few hours.

“Recent events have shown that Iraq is a potentially vulnerable supplier, just as its strategic importance has grown,” the IEA said in its report today.  

Over the past decade, Iraq has doubled its crude oil exports. Back in 2010, Iraq was exporting 2 million barrels per day (bpd), while now it ships 4 million bpd abroad, mostly through the world’s most important oil chokepoint, the Strait of Hormuz, which is in close proximity to Iranian waters and which Iran has repeatedly threatened to close.

India and China are Iraq’s largest oil customers, buying 1 million bpd of Iraqi oil each, while Europe also receives some 1 million bpd. The U.S. also buys oil from Iraq, with U.S. imports averaging 337,000 bpd in January-October 2019, the IEA said, citing data from the U.S. Energy Information Administration. Related: Is This The Start Of A New Offshore Oil & Gas Boom?

Currently, Iraq is pumping more than its quota under the OPEC+ production cut deal and hasn’t complied with the agreement in any of the previous months and years.

However, if Middle East tensions persist for longer, Iraq may not be able to increase its production capacity in the medium term as it has planned, according to the IEA.

“In the medium term heightened security concerns might make it more difficult for Iraq to build production capacity. In turn, this could make it more difficult to ensure there is sufficient spare production capacity to meet rising global demand in the second half of this decade,” the agency said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News