This was the big news from earlier today but let's put things into context based on what the numbers are saying. From earlier: Iraq, KRG agree to resume Ceyhan oil exports as Hormuz disruption tightens supply
The Iraqi state news agency confirms that the pipeline has now reopened with oil fields from Kirkuk connecting to Turkey's Ceyhan Port. However, the amount is just a measly 250,000 barrels per day.
No doubt that the reopening here is a major diplomatic breakthrough. But if anything, it is more of a lifeline for Iraq as it has been severely hampered by the de facto closure of the Strait of Hormuz. For some context, Iraq exports roughly 3.4 million barrels per day through its southern terminals in Basra (via Hormuz). So, all of that is now out of the picture.
As such, being able to use now move oil through the ITP is a massive win for Iraq. It is the only route that bypasses the Persian Gulf entirely, one that delivers oil directly to the Mediterranean port of Ceyhan.
All that being said, just be reminded of how this ties to the big picture currently:
"Even with the more positive headline from the reopening of the Iraq-Turkey Pipeline (ITP), that is still a mere drop in the bucket compared to any solution that is needed to lift the blockade in the Strait of Hormuz. At maximum capacity, the ITP provides a 1.2 million barrels per day cover or ~0.5% of total global supply. That is nowhere near the ~20% and almost 21 million barrels per day worth of transit via the Strait of Hormuz."
