On Thursday, the Iraqi government’s Oil, Gas, and Natural Resources Committee determined Iraq’s position on the voluntary oil production reduction and its impact on the country’s revenues.
During an interview, committee member Intisar Hassan stated that the Iraqi government must have a clear vision when agreeing to voluntarily decrease production by 220,000 barrels per day in the first quarter of 2024.
“Iraq has decided to reduce its oil output, citing the current global events such as the war between Israel and Gaza. The reduction is considered beneficial for Iraq’s interests, as increasing oil exports may not generate immediate revenue. Instead, the government prefers to keep the oil in hand and export it as and when required to balance the internal revenues.”
According to a member of the Parliamentary Oil Committee, the national SOMO company is responsible for deciding whether a reduction in oil exports will have an impact on global markets. The government determines the amount of oil exported from the country, as increasing exports may negatively affect its revenue rates. This statement was made by Sumo Road.
Seven oil-producing countries in the OPEC Plus alliance have decided to voluntarily reduce their oil production by up to 1.571 million barrels per day. This will take effect from May 2022 and continue until the end of 2023. The decision was announced separately by each country, including Saudi Arabia, Russia, the United Arab Emirates, Kuwait, and Iraq.
The price of oil has decreased significantly this week, remaining below the $80 mark due to recent OPEC Plus production cuts. The market is keeping a close eye on these developments.
