Iraq’s Oil Lifeline Reopens — But Can Baghdad Trust Turkey for Even One Year?

Iraq’s Oil Lifeline Reopens — But Can Baghdad Trust Turkey for Even One Year? Aside from the billions lost in immediate oil revenues for OPEC’s second-largest oil producer, the blockade meant Iraq’s domestic oil storage tanks filled quickly to maximum capacity, forcing the shutdown of several production wells. The longer that continued, the more likely it would permanently damage Iraq’s oil production because of a loss of reservoir pressure, water infiltration, and corrosion, among other factors. Although historically about 80% of Iraq’s oil exports have gone to key Asian buyers, especially China, the next-best alternative export route was through northern Iraq into Turkey. The problem here was that the key agreement for Baghdad to move its oil through two pipelines into Turkey expired on 27 July.