• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 12 mins U.S. Shale Oil Debt: Deep the Denial
  • 1 hour Satellite Moons to Replace Streetlamps?!
  • 3 days US top CEO's are spending their own money on the midterm elections
  • 2 days EU to Splash Billions on Battery Factories
  • 17 hours The Dirt on Clean Electric Cars
  • 4 hours Why I Think Natural Gas is the Logical Future of Energy
  • 15 hours Owning stocks long-term low risk?
  • 1 hour Can “Renewables” Dent the World’s need for Electricity?
  • 3 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 4 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 3 days Uber IPO Proposals Value Company at $120 Billion
The Dark Horse Of The Oil Price Rally

The Dark Horse Of The Oil Price Rally

Vietnam is set to break…

Element 23, A Breakthrough for the Energy Sector

Element 23, A Breakthrough for the Energy Sector

It’s no longer a technological…

Iraq Signals It Is Improving Compliance With OPEC Cuts

Iraq Oil

As part of the OPEC deal, Iraq has cut its oil production by more than 300,000 bpd, and so far in March its average output stands at 4.464 million bpd, according to Iraq’s state oil marketing company SOMO.

Iraq’s compliance to OPEC’s cuts is 90 percent, SOMO director Falah al-Amiri said on Thursday, as reported by Reuters.

Earlier this month, Iraq’s Oil Minister Jabar al-Luaibi said the country’s compliance rate had reached 85 percent.

Under OPEC’s agreement, Iraq vowed to voluntarily cut its output from a 4.561-million-bpd reference production level in October 2016, to a production level of 4.351 million bpd between January and June, so the March production figure announced today is 113,000 bpd above that level.

Iraq, which has disputed OPEC’s secondary sources figures before it signed up to the deal, has been the one cartel member that has missed the targeted output by the most so far. In January and February, Iraq produced 4.476 million bpd and 4.414 million bpd, respectively, according to OPEC’s secondary sources.

Iraq self-reported output of 4.630 million bpd in January and 4.566 million bpd in February, but, as OPEC says in its press releases “Direct communication is not the basis of calculating conformity of OPEC MCs production with the reference production of October 2016”.

Iraq has been signaling that it is cutting output, but it has not managed to bring it down even close to the target it had agreed to.

Related: Saudi Aramco IPO Under Pressure, As 9/11 Lawsuits And Oil Prices Hit

Iraq, OPEC’s second biggest producer behind Saudi Arabia, is expected to have boosted compliance this month, as the overall cartel compliance rate is expected to hit a record 95 percent for March.

Still, Iraq has a lot of more work to do to meet its target, that is, if it is really playing along with the cuts. OPEC, for its part, is boasting the record compliance rate, but the cuts may not be enough to drain the global oversupply, and the cartel may have to extend the deal through the end of the year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News