BAGHDAD: Iraq has said it would cut oil production by another 400,000 barrels per day (bpd) in both August and September to compensate for its overproduction in the past three months.
Oil Minister Ihsan Abdul Jabbar said in a joint statement with his Saudi counterpart Prince Abdulaziz bin Salman Iraq’s output cut was in addition to the 850,000 bpd it had committed to cut in August and September under an OPEC+ supply pact. The total reduction to Iraq’s production in August and September would amount to 1.25 million bpd for each month.
The two ministers stressed their full commitment to an OPEC+ deal curbing oil production. Abdul Jabbar confirmed Iraq’s firm commitment to the OPEC+ agreement. The two ministers discussed in a phone call the latest developments in the oil markets, continued recovery in global demand and progress made towards implementing the OPEC+ agreement.
OPEC and allies led by Russia, known as OPEC+, agreed to cut output by 9.7 million bpd, or around 10 per cent of global output, from 1 May and to taper off the cuts to 7.7 million bpd from August. In July, OPEC delivered 5.743 million bpd of its share of the cuts, equal to 94 per cent compliance. Iraq agreed to cut output by 1.06 million bpd under the deal.