Reuters reported on Thursday that Iraq intends to reduce its oil production to between 3.85 million and 3.9 million barrels per day in September, as part of a plan agreed upon with the OPEC+ alliance to compensate for production exceeding its share.
According to Reuters, the Iraqi cut will put pressure on the oil market ahead of the planned production increase by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, starting in October to begin easing some production cuts.
OPEC, citing sources, reported to Reuters that Iraq produced about 4.25 million barrels per day last July, which is higher than its quota of four million barrels per day.
The Iraqi Ministry of Oil submitted a plan to OPEC to compensate for the surplus production between this month and September of next year.
One of the sources explained that Iraq cancelled a spot shipment of one million barrels in August to reduce its exports during the current month, adding: “There were offers for the shipment but it was withdrawn from the market, with two other shipments of the same size postponed until next September.”
The source pointed out that Baghdad intends to reduce its production starting in September by reducing exports to 3.3 million barrels per day or less, from 3.43 million barrels per day, and also by reducing local consumption to 500,000 barrels per day from 570,000 barrels per day, and asking the Kurdistan Regional Government to reduce its production to 50,000 barrels per day from 150,000 barrels per day.
shafaq.com
