Nationwide output fell by about 60,000 bpd, but appears set to rebound as Iraq's most prolific field recovers from a damaging fire.
Iraqi Army and Peshmerga forces clashed over a strategically important position near key energy assets.
With the northern pipeline still offline, Iraq is compensating with robust southern exports and expanding sales into Kurdistan's local market.
Political obstacles within Iraq are still preventing crude exports from restarting after a formal letter from BOTAS to SOMO confirmed the pipeline is ready.
Crude sales averaged above 3.4 million for the third straight month as Iraq maxes out southern export outlets.
Northern exports can only come online if Baghdad strikes new political and commercial agreements.
In a U.S. legal filing, Iraq contested Turkey's effort to flip the award in its own favor, as the two sides still appear deadlocked over a restart of Iraq’s northern exports.
Baghdad has begun implementing a three-month deal to enable payments for Kurdistan's civil servants, prompting political backlash.
Recent meetings show renewed efforts to set terms for reopening the export pipeline, but top-level political approval is hardly assured.
Iraq's natural waterways have little spare supply for oil fields that need more water injection to sustain reservoir pressure and hit higher production targets.
Fields in Kurdistan are raising production and selling into the local market, as output increases despite the ongoing northern pipeline closure.
