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The Organization of Petroleum Exporting Countries (OPEC) said on Thursday that it received updated compensation plans from Iraq and Kazakhstan for their overproduced volumes for the first seven months of 2024.
According to assessments made by independent sources, OPEC said that Iraq overproduced 1.44 million barrels per day from January to July, and Kazakhstan overproduced 699,000 barrels per day.
In order to maintain the market, OPEC and other producers, notably Russia, together known as OPEC+, have begun a series of output reductions in late 2022, the majority of which will remain in effect until the end of 2025.
The Iraqi Ministry of Oil mentioned in a statement that it had sent a revised compensation plan to the OPE Secretariat and that it has taken concrete efforts to lower production levels in order to make up for the quantities that had previously surpassed the production limits.
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.
A survey by S&P Global Commodity Insights’ Platts OPEC+ revealed that Iraq produced 4.33 million barrels per day in July, 400,000 barrels per day above its quota.
July witnessed the largest increase in OPEC+ oil production in over a year as Russia continued to significantly exceed its quota while Iraq and Kazakhstan increased their output in spite of their commitment to tighter cutbacks.
The survey indicated that the group’s total output was at 41.03 million barrels per day, up 160,000 barrels per day from June.
Up from 229,000 barrels per day in June, member countries subject to quotas produced 437,000 barrels per day more than the target in July.
Two countries that overproduced in the first half of 2024 unveiled their compensation plans in July, when Kazakhstan promised to decrease 18,000 barrels per day further and Iraq promised to cut an additional 70,000 barrels per day.
The overproducers will voluntarily reduce their output by 2.2 million barrels per day until the end of 2024’s third quarter.
