Iraq won’t agree to more OPEC+ production cuts, oil minister reports

Khalid Al-Ansary and Kadhim Ajrash, Bloomberg May 12, 2024

(Bloomberg) – Iraq’s oil minister said he won’t agree to more oil production cuts at the next OPEC+ meeting.

Asked if Iraq would agree to extend the production cuts, Oil Minister Hayyan Abdul Ghani told reporters, “No, I think Iraq has cut enough and will not agree to any other cut.” It wasn’t clear if he was referring to an extension or a deeper cut.

Ministers are due to meet on June 1 in Vienna and are widely expected to extend their current production cuts into the second half. Iraq, the second-biggest producer in OPEC, is already causing unease in the group by failing to fully implement the existing curbs.

Deputy Iraqi Oil Minister Basim Mohammed Khudair a few hours later said Baghdad was “committed to the voluntary reduction decision within the deadline set by OPEC and its allies.”

He said the country is exporting 3.4 MMbpd so far this month. That’s just over the 3.3 MMbpd it said in March it would cut exports to, as part of efforts to get production back to the agreed level. Iraq has a long history of failing to meet OPEC targets as it struggles to rebuild its war-shattered economy and has agreed to make additional cuts through the end of the year to make up for recent poor compliance.

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