According to Reuters on Thursday, Iraq wants to cut its oil output to between 3.85 million and 3.9 million barrels daily in September in line with a strategy decided upon with the OPEC+ alliance to offset production surpassing its share.
Starting in October to start some production cuts, the Iraqi drop will put pressure on the oil market ahead of the intended increase by the Organisation of the Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, Reuters reports.
Based on sources, OPEC told Reuters last July that Iraq produced over 4.25 million barrels daily, beyond its four million barrel daily cap.
The Iraqi Ministry of Oil presented a proposal to OPEC to offset the excess output between this month and September of next year.
“There were offers for the shipment but it was withdrawn from the market, with two other shipments of the same size postponed until next September,” one of the sources said, explaining Iraq’s cancellation of a one million barrel spot cargo in August to lower its exports during the current month.
Baghdad plans to cut its output beginning in September by lowering exports to 3.3 million barrels daily or less, from 3.43 million barrels per day, and also by lowering local consumption to 500,000 barrels daily from 570,000 barrels per day, and requesting the Kurdistan Regional Government to cut its production to 50,000 barrels per day from 150,000 barrels per day.
