U.S. imports of Iraqi crude oil collapsed to 504,000 barrels in June, the lowest level since 2003, as the Strait of Hormuz crisis forced a 70% reduction in Iraq's southern oil production.
EIA data show U.S. imports of Iraqi crude collapsed from over 10 million barrels in January to as few as 504,000 barrels in June, the lowest since 2003, as the Hormuz closure cut Iraq's southern output by 70% to 1.3 million bpd from 4.3 million bpd. Lost supply is supportive for prices, but exports have rebounded via Ceyhan at 500,000 bpd and output is recovering, limiting the effect.
The Strait of Hormuz closure choked Iraq's main export route of more than 3 million bpd and cut its southern output by 70% to 1.3 million bpd, a supply loss that underpins Brent prices. However, exports via Ceyhan have rebounded to 500,000 bpd and output is recovering, while Brent futures quoted in the article fell 2.34% on easing Middle East tensions.
U.S. imports of Iraqi crude oil plummeted to a multi-decade low this year as the Strait of Hormuz crisis disrupted major export routes. Monthly volumes fell from over 10 million barrels in January to 504,000 barrels in June, marking the lowest level since 2003. While shipments have since seen a modest recovery, the disruption highlights the vulnerability of Iraq's production, which previously saw southern output drop by 70% to 1.3 million bpd.
Iraq is OPEC's second-largest producer, exporting more than 3 million bpd through the Strait of Hormuz before the war, and the shipment collapse cut barrels available to U.S. refiners.
Not fully: shipments have rebounded in recent weeks, including 1.486 million barrels to the U.S. in July and 1.387 million in August, and output is recovering.
Yes, losing roughly 3 million bpd of exports through Hormuz for much of the year removed significant supply, but the rebound in shipments via Turkey cushions the effect.
Likely partly: the import data are retrospective EIA figures, and recent headlines point to easing Hormuz risks, with Brent futures quoted 2.34% lower.