Iraq fulfills conditions on oil production cut

In January, Iraq fulfilled the agreement to cut oil production under the OPEC+ agreement by 106 percent, Report informs, referring to the Iraqi state-owned company State Organization for Marketing of Oil (SOMO).

The maximum permissible volume of oil production for Iraq in the first quarter is 3,857 barrels per day, the statement says.

Last September, the head of SOMO, Alaa al-Yasiri, said Iraq’s failure to fulfill the OPEC+ deal was caused by uncontrolled oil production in the Kurdistan region, which failed to undertake a commitment to cut oil production.

The new OPEC+ deal started in May 2020 with a reduction in oil production by 9.7 million barrels per day. From August, the alliance relaxed the restrictions to 7.7 million. In January, it agreed on cuts of 7.2 million.

The decision of January 5 is the following - only Russia and Kazakhstan will increase production. As a result, the overall reduction will soften to 7.125 million barrels per day in February and 7.05 million in March.