Federal Iraq’s refining runs are at near-record levels despite offline capacity thanks to a KRG processing deal. Fuel oil exports have resumed as Iraq cuts crude exports by slashing fuel oil blending with an eye on Opec production compliance.

Federal Iraq is running its 10 operational refineries flat out as the Ministry of Oil seeks to reduce reliance on imports of gasoline and diesel in the face of rising consumption. MEES estimates operational federal refining capacity is 576,000...