Shafaq News/ Iraq plans to lower its oil output to in between 3.85 million and 3.9 million barrels each day in September as part of a strategy to make up for producing over its quota concurred with OPEC and allies, Reuters quoted a source on Thursday.
The plan comes just as Libyan oil production drops due to a. political conflict in between various factions.
The declines will tighten the oil market ahead of a prepared. output boost by OPEC and its allies - called OPEC+ - from. October to begin loosening up some production cuts.
Iraq produced about 4.25 million barrels each day (bpd) in. July, according to the Company of the Petroleum Exporting. Countries, mentioning secondary sources. That is above its quota of. 4 million bpd.
The oil ministry had actually sent a strategy to OPEC to compensate. for the overproduction between this month and September next. year. Iraq's cumulative overproduction between January and July. was 1.4 million bpd, OPEC said recently.
Iraq cancelled a spot cargo of 1 million barrels in August. to reduce its exports throughout the month, the source said.
There were quotes for the freight however it was removed the. market, the source said, adding two more freights of the exact same. size will be deferred from August to September.
Baghdad plans to reduce its output from September onwards by. cutting exports to 3.3 million bpd or lower, from 3.43 million. bpd, in addition to cutting local consumption to 500,000 bpd from. 570,000 bpd and asking the Kurdistan Regional Federal government to cut. its output to 50,000 bpd from 150,000 bpd, the source stated.
OPEC Secretary General Haitham Al Ghais was in Baghdad on. Wednesday and consulted with Iraqi Oil Minister Hayan Abdel-Ghani.
OPEC stated on X that Abdel-Ghani restated Iraq's. dedication to the complete and timely implementation of production. level changes, including payment plan as agreed under. the Statement of Cooperation