Iraq could Lose 1.7m bpd Export if Hormuz is Shut

Bloomberg reports that Iraq would lose the capacity to export 1.7 million barrels of crude a day if Iran blocks the Strait of Hormuz.

Iraq will have to depend on the northern route from where it can export 450,000 barrels a day through Turkey’s port of Ceyhan on the Mediterranean,” Oil Ministry spokesman Asim Jihad told Bloomberg.

Crude prices are estimated to rise significantly if Iran implements its threats to close Hormuz, and Iraq can compensate for some of its losses if its export route from the south is closed,” he said.

A top adviser to Prime Minister Nouri al-Maliki, Thamir Ghadhban, said Iraq is pursuing plans to open new oil export routes via neighboring Syria.

(Source: Bloomberg)

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