Friday, 19th April, 2024
Friday, 19th April, 2024

Iraq to pare oil production of February

Iraq plans to cut oil output in January and February to make up for breaching its OPEC+ quota last year, according to the state company that markets the nation’s crude.

OPEC’s second-biggest producer will pump around 3.6 million barrels daily for the two months, according to Ali Nizar, the deputy head of SOMO. That compares with around 3.85 million in December, according to data compiled by Bloomberg.

 

In an interview in the capital, Baghdad, Nizar said exports from Kurdistan’s semi-autonomous northern regions would be a little more than 3 million barrels a day during this period. Last month, that number was about 3.3 million.

Baghdad’s ability to meet these goals depends on whether the Kurdistan Regional Government agrees to reduce supplies from areas under its control, Nizar said. The central government has complained in the past that it cannot control Kurdish production.

 

A coalition of petroleum exporters and Russian partners, such as OPEC +, agreed in April to reduce output and the price of ballast oil, which spread the coronavirus. Saudi Arabia has criticized other members, including Iraq and Nigeria, for putting pressure on the cap at various times and called for a reduction in their compensation.

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