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The Iraqi Ministry of Oil said on Friday that Iraq has reduced its oil production to 3.3 million barrels per day in line with its commitment to the OPEC+ agreement.
The Oil Ministry clarified in a statement that the current reduction will continue over the coming months to ensure that production remains within the limits agreed upon and compensate for the surplus produced in the past months.
The step aims to enhance balance and stability in global oil markets, according to the statement.
Oil production in Iraq during September reached 3.94 million barrels per day, less than the country’s OPEC+ output limit of almost four million barrels per day.
Decreased exports, lower domestic consumption, and a drop in output from the Kurdistan Region of Iraq were the reasons production had fallen short of the OPEC+ quota, according to Reuters.
In late August, a source said that the Iraqi government plans to reduce the country’s oil production to between 3.85 million and 3.9 million barrels per day in September.
The step is part of an agreement reached with the OPEC+ alliance to offset overproduction.
OPEC said in August that it received updated compensation plans from Iraq and Kazakhstan for their overproduced volumes for the first seven months of 2024.
In order to maintain the market, OPEC and other producers, notably Russia, have begun a series of output reductions in late 2022, the majority of which will remain in effect until the end of 2025.
The step demonstrates Iraq’s commitment to enhancing the joint efforts of the OPEC+ group in order to preserve stability in the global oil market and protect the interests of both oil producers and consumers.
