Iraq Cuts Output & Asian Jet Fuel Trend

Asia and Middle Eastern Jet Daily Market Analysis / Iraq cuts southern output; tankers avoid Hormuz Strait / California faces shortages as refineries close, Asia cuts

Jun 03, 2026

Asian jet fuel/kerosene prices remained firm on March 9, as reflected in the regrade and market structure, amid the war in the Middle East, which continued to threaten global oil supply. Iraq’s oil production from its southern fields has fallen to 1.3 million b/d, directed to local refineries and power stations, Kazem Karim, Basrah Oil Company’s deputy director for field and license affairs, told Iraqi state media March 8. Typically, Basrah Oil Company production is 3.3 million b/d, Karim said, but a de facto halt to exports as ships avoid the Strait of Hormuz has forced the producer to shut in production. Saudi Arabia’s 1 million b/d Shaybah oil field saw several rounds of drone strikes over March 7-8, but all were intercepted and destroyed, with no reports of damage,...

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