Iraq has begun shutting oil production at the massive Rumaila field operated by BP Plc, according to sources familiar with operations. The field is reducing output as storage tanks reach capacity while tankers face delays exiting the Persian Gulf. The person said Iraq could cut 3 million barrels a day if storage constraints persist.

BP manages Rumaila jointly with Iraq and PetroChina Co, making it one of the world's largest oil operations. The field produced over 1.4 million barrels daily in 2024 but had dropped to roughly 1.2 million barrels per day early last year. The production cuts come as Iraq also halted oil exports from its Kurdistan region to Turkey's Ceyhan port.

The shutdowns highlight mounting storage pressures in the global oil market as demand collapses and tankers remain stuck at sea. With major producers struggling to find storage space and export routes, Iraq's production cuts could accelerate if storage facilities remain full and shipping bottlenecks continue.