Iraq Oil Output Reportedly Plunges, Raising Fears Over Export Disruptions

April was the most difficult month in decades for Iraq’s crude oil production, with output averaging 1.389 million barrels per day (bpd), Simon Watkins reported for Oilprice.com.

Oil accounts for more than 90% of Iraq’s government revenue, making the decline economically severe. (Photo: Mass Communication Specialist 2nd Class Nathan Schaeffer, U.S. Navy)

This compares with a long-term average of about 3.47 million bpd from January 2002 through March of this year, and more than 4.1 million bpd in the three months before the onset of the reported US–Israel–Iran conflict on February 28.

The last time Iraq’s production fell to similar levels was in the early 2000s, during and after the 2003 US-led invasion.

Oil accounts for more than 90% of Iraq’s government revenue, making the decline economically severe. The report also notes that a large share of Iraq’s exports has historically relied on limited shipping routes, increasing vulnerability to disruptions.

The production slowdown has led to storage constraints and forced temporary shutdowns at some wells.

Analysts warn that prolonged shutdowns could damage reservoirs due to pressure loss, water intrusion, and corrosion, particularly in mature southern oil fields. As a result, Iraq is reportedly seeking alternative export routes, including northern pipeline options, though these present political and logistical challenges.