June 22, 2024
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Iraq Opposes Further Oil Production Cuts Ahead of OPEC+ Meeting

Iraq’s oil minister affirmed on Saturday that Iraq had implemented adequate voluntary oil production reductions and would not support any additional cuts proposed by OPEC+ at its upcoming meeting in early June.

This statement comes amidst discussions within OPEC+ regarding the potential extension of voluntary output cuts in response to sluggish demand.

Sources familiar with the matter informed Reuters that OPEC+ may consider extending some voluntary output cuts if demand fails to rebound.

However, when questioned by a reporter about Iraq’s stance on extending the voluntary cuts at the June 1 meeting, Oil Minister Hayan Abdul Ghani stated firmly, “Iraq has reduced (output) enough and will not agree to any new cut.”

The minister’s remarks, made on the sidelines of an oil and gas licensing conference in Baghdad, have raised questions about Iraq’s position regarding the extension of voluntary cuts.

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While Abdul Ghani’s statement contradicts widespread expectations of a rollover of cuts, it remains unclear whether he opposes an extension altogether or simply rejects additional cuts.

Iraq had committed to voluntary cuts announced by OPEC+ in 2023 but exceeded its output quota by a cumulative 602,000 barrels per day in the first three months of 2024, as stated in a recent OPEC+ statement.

Consequently, Baghdad agreed to compensate by implementing additional production cuts for the remainder of the year.

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