Iraq lags behind OPEC partners in making output cuts
Iraq has not notified any of its oil buyers of cuts made to exports indicating that it is experiencing difficulties in implementing the OPEC deal to slash supply.
Iraq is the second largest oil supplier within OPEC. It has asked its main oil company Basra Oil Co. to start reducing output from this month in a bid to eventually slash output by 1 million bpd. Yet the biggest oil fields in the country are operated by foreign-owned companies such as BP. No action plan has been arranged with them.
Iraq’s inability to comply with the OPEC+ deal could have a detrimental impact on the overall effort to reduce output by 9.7 million bpd which was agreed in order to raise plummeting oil prices.
Reuters reports that foreign-owned companies have refused to make any cuts and political changes within Iraq are making the process more complicated.
Saudi Arabia, Kuwait, Oman and the United Arab Emirates have notified their consumers that cuts will be made to production. Some of these countries have officially notified OPEC too.
Smaller producers such Nigeria and Angola are also likely not to meet the requirements of the most recent OPEC+ deal but intend to surpass targets under previous agreements.