Iraqi state news agency stressed on Friday its full commitment to their country’s OPEC + agreement, which limits oil production. Recent developments in the oil markets, the continuation of the recovery in global demand and progress towards the implementation of the OPEC + agreement were discussed.
The Organization of Petroleum Exporting Countries and the group known as OPEC + and its allies launched a record supply cut in May to support the low oil prices caused by the coronavirus crisis. They agreed to cut 9.7 million bpd per day, or 10% of global production, starting May 1. They achieved a match equal to 94% of that discount.
However, OPEC oil production rose by 1 million barrels a day in July when Saudi Arabia and other Gulf members ended their voluntary extra cuts in July. There was an increase of over 1 million barrels a day in July, with other members making limited progress on alignment.
Saudi Arabia agreed to cut production by 2.5 million barrels under the OPEC + agreement.
Under the agreement, Iraq agreed to cut production by 1.06 million barrels a day, and Iraq said it would make an additional cut of about 400,000 barrels per day in August to compensate for its overproduction over the past period.
Iraq’s commitment to the OPEC + agreement commitment is said to reach 100% compliance in August.
Saudi and Iraqi energy officials said the efforts made by OPEC + member states would increase the stability of global oil markets, accelerate the balance and send positive signals to the markets.