Iraq's southern crude output rises by about 500,000 bpd to 1.5 million bpd

Iraq's southern crude oil production has risen by 500,000 barrels per day to 1.5 million bpd, driven by increased output from key oilfields and improved navigation through the Strait of Hormuz.

Iraq's southern ​crude output has risen by about ​500,000 barrels per day ‌to ​reach 1.5 million bpd as more tankers reach export terminals, a document seen by Reuters and three ‌oil official said on Wednesday.

The production from Iraq’s southern oilfields was around 1 million barrels per day (bpd) before the hike, the three oil officials said. The ‌officials said the easing of the war between the U.S. and Iran, ‌along with gradual improvements in the safety of navigation through the Strait of Hormuz, had helped more oil tankers reach Iraq's southern export terminals.

Iraq has increased output from ⁠the ​Rumaila oilfield by 300,000 ⁠bpd to around 650,000 bpd as export operations recovered, according to the document and ⁠the oilfield officials. Iraq also restarted the West Qurna 2 oilfield with output ​of about 150,000 bpd, helping lift southern crude production, the officials and the ⁠document said.

Among Gulf oil producers, Iraq has suffered the biggest drop in oil revenue ⁠as ​a result of the effective closure of the Strait, a Reuters analysis has found, because it lacks alternative shipment routes. The increase in ⁠southern output comes after the United States and Iran agreed earlier this week ⁠on a framework ⁠to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz.