Iraq to cut oil exports to compensate for output breach

Iraq said it will reduce oil exports in the coming months to compensate for producing above its OPEC+ limits in January and February. 

The country’s output has been a matter of debate in recent months with data from the Organization of Petroleum Exporting Countries showing Baghdad is above its limit. However, Oil Minister Hayyan Abdul Ghani said this month Iraq is adhering to the assigned target of 4 million barrels a day. 

The nation — OPEC’s the second-biggest OPEC producer, with a long history of breaking its output pledges — will cut exports to 3.3 million barrels a day in the coming months, according to a statement from the Oil Ministry. This compares with the 3.43 million barrels a day the country exported in February, the ministry’s figures show.

OPEC and its allies have pledged to reduce production in an effort to prevent a global surplus. The measures have helped push Brent crude futures above $80 a barrel while world demand growth slows and rival output from the Americas climbs. Iraq’s latest comments are about exports, and not output.  

The country reduced production to an average of 4.2 million barrels a day in February, according to a report from OPEC this month. That put it about 200,000 barrels a day over its agreed limit. 

Iraq is committed to its voluntary cuts, the ministry said in its statement, adding that it is coordinating with OPEC+ sources to reflect the export curbs in their upcoming reports. The nation has in the past disputed OPEC+’s assessment of its crude output.