Iraq will reduce its crude exports to 3.3 MM bpd in the coming months to compensate for any rise above its OPEC+ quota in January and February, said Hydrocarbonprocessing.
Iraq is committed to voluntary cuts agreed with the OPEC+ group of oil-exporting countries and is coordinating with secondary sources to reflect the export curbs in their upcoming OPEC+ reports, the ministry said in a statement.
The de facto Saudi-led Organization of the Petroleum Exporting Countries and allies including Russia, known collectively as OPEC+, have implemented a series of output cuts since late 2022 to support the market. A new cut for the first quarter took effect in January and earlier this month was extended to cover the second quarter.
Oil has found support in 2024 from rising geopolitical tensions and Houthi attacks on Red Sea shipping, although concern about economic growth has weighed.
Iraq's production quota is 4 million barrels per day (bpd) under the voluntary cuts. The secondary sources, which provide data on OPEC+ members' production, reported Iraq's production at 4.2 million bpd in February.
Iraq's oil exports averaged 3.43 million bpd in February, the oil ministry said earlier this month.
We remind, Iraq reopened its North Refinery in Baiji that was shut for a decade during the violence and chaos that followed the U.S.-led invasion in 2003, which made it nearly impossible to run one of the country's most vital energy complexes. The fall of Saddam Hussein was meant to bring stability and prosperity to major OPEC oil producer Iraq after years of economic mismanagement and military misadventures brought the country to its knees.
mrchub.com