Reuters: Iraq Plans to Cut Oil Production to 3.85-3.9 M BpD

According to a source familiar with the matter, Iraq intends to reduce its oil production to between 3.85 and 3.9 million barrels per day in September, as part of a plan to compensate for the overproduction beyond the quota agreed with the OPEC+ alliance. 

The source informed Reuters on Thursday that Iraq had canceled a one-million-barrel spot shipment in August to reduce exports for the month.

Meanwhile, data from the Iraqi Ministry of Oil indicated that the country’s average oil exports stood at 3.48 million barrels per day in July, totaling 108 million and 53 thousand barrels. 

The total oil exported from the central and southern Iraqi oil fields in July was about 106.12 million barrels, with exports from the Qayyarah field amounting to 1.93 million barrels.

The Ministry of Oil reaffirmed Iraq's full commitment to the OPEC Declaration of Cooperation, stating that it would compensate for any excess oil production since the beginning of the year.

On Wednesday, OPEC Secretary-General Haitham Al-Ghais visited Baghdad from Kazakhstan, where discussions on oil market developments took place, emphasizing the importance of ensuring the success of ongoing efforts by the OPEC+ cooperation declaration countries to maintain oil market stability.

Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries after Saudi Arabia, currently has the capacity to produce nearly 5 million barrels per day.