Iraqi sales gas output hit a new record in Jan; fuel oil supplies are rallying as damaged refineries are repaired. Both are key factors behind a drop in direct crude burning.

Iraq’s sales gas volumes – of which almost all is burned in power plants – hit a new record of just over 1.3bn cfd in January, as flaring fell below 55% of wellhead output for the first time since November 2010. Although January’s total gas production was slightly below December’s monthly...