Iraq: OPEC and allies may deepen oil cut deal to reach 1.6m bpd

Author: 
Reuters
ID: 
1575197492942372600
Sun, 2019-12-01 10:46

BAGHDAD: OPEC and allied oil producers will consider deepening
their existing oil supply reduction deal by about 400,000 barrels
per day to 1.6 million bpd, Iraq’s oil minister said on
Sunday.

The minister, Thamer Ghadhban, told reporters in Baghdad that
the Organization of the Petroleum Exporting Countries and its
allies, together known as OPEC+, will consider deepening the cuts
at meetings due this week in Vienna.

OPEC+ oil exporters have coordinated their output for three
years to balance the market and support prices. Their current deal,
which agreed to cut supply by 1.2 million bpd from January this
year, is due to expire at the end of March.

Iraq will exceed 100 percent commitment with the supply deal as
of Sunday, Ghadhban also said, adding that an agreement capping
production from the semi-autonomous Kurdistan region will also help
the country’s compliance.

The agreement with the Kurdistan Regional Government (KRG) caps
production from the northern Iraqi region at 450,000 bpd, he said.
About 250,000 bpd of the KRG’s output will be handed over to the
central Iraqi government and 200,000 bpd will be used by the region
to pay back debt owed to foreign firms, he added.

The minister also said that Iraq’s crude output has not been
affected by anti-graft protests that broke out in early October
across Baghdad and the oil-rich regions of the south.

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Source: FS – All-News-Economy
Iraq: OPEC and allies may deepen oil cut deal to reach 1.6m bpd