Oil Production Hikes at Iraq's South

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 oil producers in the region, 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.