In accordance with its commitment to the OPEC+ agreement, the Iraqi Ministry of Oil announced on Friday that the country had reduced its oil production to 3.3 million barrels per day.
In a statement, the Oil Ministry made it clear that the current decrease will continue for the upcoming months to make sure that production stays within the limits that were agreed upon and to make up for the surplus that was produced in the previous months.
The statement says that the move aims to make global oil markets more balanced and stable.
In September, Iraq produced 3.94 million barrels of oil per day, less than the OPEC+ limit of almost four million barrels per day.
According to Reuters, the reasons production had fallen short of the OPEC+ quota were lower domestic consumption, lower exports, and lower Kurdistan Region of Iraq output.
A reliable source stated toward the end of August that the Iraqi government intends to reduce the country’s oil production in September to somewhere between 3.85 million and 3.9 million barrels per day.
To reduce excess production, the step is a part of an agreement with the OPEC+ alliance.
In August, OPEC stated that it had received updated compensation plans from Kazakhstan and Iraq for the first seven months of 2024 for their overproduction.
OPEC and other producers, particularly Russia, began a series of output reductions toward the end of 2022 in order to maintain the market. The majority of these reductions will continue until the end of 2025.
This action demonstrates Iraq’s commitment to enhancing the OPEC+ group’s collaborative efforts to maintain market stability and safeguard oil producers’ and consumers’ interests.
