Iraq to reduce oil production in September
A source has revealed that the Iraqi government planned to reduce the country’s oil production to between 3.85 million and 3.9 million barrels per day in September.
A source has revealed that the Iraqi government planned to reduce the country’s oil production to between 3.85 million and 3.9 million barrels per day in September.
The step is part of an agreement reached with the OPEC+ alliance to offset overproduction, according to Reuters.
The Iraqi step is taking place at a time when Libya’s oil production is declining as a result of political unrest among different groups.
As OPEC and its allies, known as OPEC+, prepare to boost their oil output in October in an effort to start lifting some of their production curbs, Iraq’s oil reduction may put pressure on the oil market.
OPEC said in late August that it received updated compensation plans from Iraq and Kazakhstan for their overproduced volumes for the first seven months of 2024.
According to assessments made by independent sources, OPEC said that Iraq overproduced 1.44 million barrels per day from January to July, and Kazakhstan overproduced 699,000 barrels per day.
In order to maintain the market, OPEC and other producers, notably Russia, have begun a series of output reductions in late 2022, the majority of which will remain in effect until the end of 2025.
The Iraqi Ministry of Oil mentioned in a statement that it had sent a revised compensation plan to the OPEC Secretariat and that it has taken concrete efforts to lower production levels in order to make up for the quantities that had previously exceeded the production limits.
The step demonstrates Iraq’s commitment to enhancing the joint efforts of the OPEC+ group in order to preserve stability in the global oil market and protect the interests of both oil producers and consumers.
