This is a quick turn of fortunes after Iraq surpassed neighboring Iran as the second largest oil producer within OPEC last year , hitting a peak of 3.4 million according to Standard Chartered Bank in its latest report on the country . Iraq is experiencing the deadliest sectarian violence since 2008 and oil production has fallen . The U.S. military said it was investigating reports of civilian casualties in Fallujah after a car bomb exploded near an Iraqi army checkpoint on Sunday. This means the companies have little appetite for risk , CNN 's John Defterios says . There are fears Iraq is not investing enough in its oil distribution network , he says .
Iraq is experiencing the deadliest sectarian violence since 2008 and oil production has fallen . The U.S. military said it was investigating reports of civilian casualties in Fallujah after a car bomb exploded near an Iraqi army checkpoint on Sunday. This means the companies have little appetite for risk , CNN 's John Defterios says . There are fears Iraq is not investing enough in its oil distribution network , he says .