Iraq’s Oil Production Soars to 2019 High as Hormuz Flows Surge

Iraq's crude oil production surged to a four-year high of 4.6 million barrels per day in October 2022, according to data from the International Energy Agency's monthly report. This marked an increase of 540,000 barrels per day from September, surpassing the OPEC quota by approximately 170,000 barrels per day. Kuwait and Saudi Arabia also boosted their production, with Kuwait raising output from 1.58 million barrels per day in September to 2.03 million barrels per day in October, though it was still 650,000 barrels per day below its OPEC limit.

Saudi Arabia, the world's leading oil producer and de facto OPEC leader, increased its output by about 1 million barrels per day to 9.99 million barrels per day, slightly below its OPEC quota of about 10.5 million barrels per day. Saudi Arabia's production figures show that a portion of the increase went into storage, resulting in a domestic and overseas export supply of 7.122 million barrels per day in August, 7.988 million barrels per day in September, and 9.2 million barrels per day in October.

The recent surge in crude oil flows through the Strait of Hormuz, facilitated by smaller tankers transferring cargoes onto supertankers in the Gulf of Oman, has contributed to the rising oil volumes leaving the strait.