Iraq "Additional Daily Oil Production Cut of 400,000 Barrels in August-September"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Iraq announced on the 7th that it will reduce its oil production by an additional 400,000 barrels per day beyond the cut allocated under the OPEC+ (Organization of the Petroleum Exporting Countries (OPEC) member countries and non-OPEC allies) agreement for the two months of August and September.

On the same day, Ihsan Abdul Jabbar, Iraq's Minister of Oil, stated in a joint declaration with the Saudi Arabian Minister of Oil, "Iraq's production cut for August and September will be 40,000 barrels per day more than the 850,000 barrels per day set in the OPEC+ agreement."

He added, "Iraq will fully comply 100% with the OPEC+ production cut agreement."

OPEC+ had agreed to cut production by 9.7 million barrels per day in May and June, and 9.6 million barrels per day in July, in response to the decline in oil demand and price collapse caused by the COVID-19 pandemic, and has been implementing these cuts.

From August until the end of the year, the production cut will be reduced to 7.7 million barrels per day. The cut baseline is 11 million barrels per day for Saudi Arabia and Russia, and the October 2018 production levels for other oil-producing countries.

However, some oil-producing countries such as Iraq and Nigeria failed to meet their production cut quotas in May and June. These countries, under pressure from Saudi Arabia and Russia who lead OPEC+, promised at the July meeting to compensate for the shortfall in production cuts starting in August.

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