Peregraf
Iraq’s oil ministry has announced a significant reduction in its oil output, cutting production by nearly 200,000 barrels per day in adherence to the OPEC+ alliance’s production quota.
"In line with the Republic of Iraq’s commitment to the OPEC+ decisions on adjusting oil production, and following the most recent discussions during the Secretary General of OPEC’s visit to Baghdad, Iraq has reduced its oil exports to 3.3 million barrels per day, starting from August 27, 2024," the ministry said in a statement.
The ministry also confirmed plans to reduce domestic consumption as part of the effort.
"These reductions will continue in the coming months to ensure production remains within required levels. This includes compensating for the excess amounts produced in previous months," the ministry’s statement added.
Iraq’s three-year budget, passed in June 2023, stipulates that the oil ministry must sell 3.5 million barrels of oil per day to meet fiscal requirements.
Under its agreement with OPEC+, Iraq is permitted to produce four million barrels of oil per day, of which 3.3 million barrels are allocated for export, with the remainder for domestic use. However, earlier this year, Iraq exceeded its production limit, with output surpassing the quota by over 1.4 million barrels per day.
Last week, Iraq and its OPEC+ partners agreed to extend the ongoing production cuts of 2.2 million barrels per day until the end of November. Afterward, the cuts will be gradually phased out on a monthly basis from December 2024 through November 2025.