Daily Management Review

Iraq shows full compliance with oil production cuts


In January, Iraq showed 106% compliance with the agreement to reduce oil production under the OPEC+ agreement, the Iraqi state-owned State Oil Marketing Organization (SOMO) said on Wednesday.

Tony Hisgett
Tony Hisgett
"Iraq complied (with the terms of the deal to reduce oil production - ed.) by 106% in January," the INA news agency quoted the company as saying. Iraq's oil production limit for the first quarter is 3,857,000 bpd, the statement added.

Earlier on Wednesday, Saudi Energy Minister confirmed that Iraq is making progress in offsetting the oil production shortfall.

Last September, SOMO chief said Iraq's underperformance in the OPEC+ deal was caused by uncontrolled oil production in Kurdistan, which has not committed to oil production cuts.

The new OPEC+ deal began in May 2020 with a 9.7 million bpd cut in oil production, then the alliance eased restrictions to 7.7 million from August and agreed cuts of 7.2 million for January. Meanwhile, OPEC+ has so far agreed to decide on further production on a monthly basis, depending on market conditions, but in increments of no more than 500,000 barrels.

The decision of 5 January is that only Russia and Kazakhstan will increase production, resulting in an overall reduction of 7.125 million bpd in February and 7.05 million bpd in March.

source: oilprice.com