August 10, 2020 at 4:44 am

Iraq pledges to deepen oil output cuts in August, September

By Meeta Ramnani

Iraq said on Friday it would cut its oil production by another 400,000 barrels per day in both August and September to compensate for its overproduction in the past three months.

Iraq oil minister Ihsan Abdul Jabbar said in a joint statement with his Saudi counterpart Prince Abdulaziz bin Salman that 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 will amount to 1.25 million bpd for each month.

“The reduction could be adjusted when the six secondary sources publish their production figures,” the joint statement said, referring to oil industry data providers such as the International Energy Agency.

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, adding that Iraq would reach 100% conformity by the beginning of August.

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.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, began a record supply cut in May to bolster oil prices hammered by the coronavirus crisis.

OPEC and allies led by Russia, known as OPEC+, agreed to cut output by 9.7 million bpd, or around 10% of global output, from May 1, 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% compliance, a Reuters survey found.

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Meeta Ramnani

Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.

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