Iraq slashes crude exports in May in OPEC compliance drive: official

Iraq's federal crude production in May fell 59,000 b/d month over month to 3.605 million b/d on lower exports, a senior official at state oil marketer SOMO said June 2, as the country looks to speed up efforts to compensate for previous overproduction.

The key OPEC member saw its quota rise 49,000 b/d to 4.049 million b/d in May as part of plans by eight voluntary cutters to gradually return 2.2 million b/d of crude to the market.

Yet that increase runs in tandem with its compensation plan designed to compensate for serial overproduction in 2024. In the latest plan, published by the OPEC secretariat in Vienna in April, Iraq vowed to underproduce its quota by 140,000 b/d in May.

The 3.605 million b/d figure is in addition to some 200,000 b/d pumped by the semi-autonomous Kurdistan region, the official said. KRG production counts towards Iraq's OPEC quota, despite Baghdad having scant control over it.

That would put total Iraqi output in May at 3.805 million b/d, some 244,000 b/d below its quota, potentially allowing it to complete its compensation schedule ahead of its scheduled completion in June 2026.

"We are focusing at the moment on the compensation plan, we want to get that done as soon as possible," the official said.

The Platts OPEC Survey from S&P Global Energy estimates Kurdish output at around 240,000 b/d -- much of it used locally or trucked into neighboring countries -- and has had Iraqi output above 4 million b/d throughout 2025.

Export cut

The SOMO official said the reduced output in May followed a decision by Iraq's government to trim crude exports below 3.2 million b/d in May and June in a bid to focus on compliance with its OPEC quota.

Federal crude exports in May were just 3.161 million b/d, compared to 3.255 million b/d in April, the official said, while 7,000 b/d was drawn from stocks in the month.

Provisional data from S&P Global Commodities at Sea shows Iraqi crude exports in May down 194,000 b/d month over month.

Meanwhile, domestic consumption from refinery runs rose 7,000 b/d, with the conclusion of maintenance at Basrah and Kirkuk largely canceled out by temporary maintenance at Daura and an electrical issue at the al-Sumoud refinery, which shut down the northern plant for several days. Al-Sumoud is part of the Baiji refinery complex.

Direct use was slightly higher month over month at 59,000 b/d due to shortages of Iranian gas and higher temperatures, the official said.

Increased condensate production -- including from gas capture projects by Western majors and Chinese oil companies -- and blending with crude for export have also helped move Iraq towards compliance with its quota, according to Iraqi officials.

Platts reported recently that Asian refiners -- including in China and South Korea -- are monitoring the increasing API of Iraq's Basrah Medium crude as condensate blending has made it lighter.