Iraq reiterates commitment to OPEC+, but seeks new future rules: finance minister

Dubai — Iraq wants OPEC+ to take into consideration the economic and living conditions of countries when assigning quotas in oil production cuts, the country's finance minister said, as OPEC's second-largest oil producer struggles to adhere to it production limits.

"Iraq's decision to comply with OPEC+ agreement is good and sound and we are committed to it until its expiry," Ali Allawi said in a televised press conference June 7.

"But we want also to have new future rules in order to distribute this burden on countries, taking into consideration economic conditions of these countries and living standards when these amounts of cuts are implemented."

Allawi, who used to be acting oil minister in the cabinet of Prime Minister Mustafa al-Kadhimi, blamed on June 2 "technical issues" for the country's failure to further cut its output and reiterated the country's commitment to the OPEC+ agreement.

Quota buster

Iraq pumped 4.213 million b/d in May and exported 3.63 million b/d, oil marketer SOMO said June 7. The production figure was above the country's 3.592 million b/d quota for May under the OPEC+ agreement.

OPEC+ agreed on June 6 to extend its record 9.7 million b/d cut for May and June to July and mandated oil quota busters such as Iraq to over-comply with cuts in July, August and September to make up for overproduction.

Iraq has failed over the past three years to stick to its quota as it grappled with the aftermath of its war with the Islamic State group between 2014-2017 and ensuing financial problems.

The country has also struggled with internal political upheavel, with protests erupting in October and leading to the resignation of the government of Adel Abdul Mahdi.

Iraq stayed under the caretaker government of Abdul Madhi until the appointment of the Kadhimi government in May.

The outbreak of the coronavirus has also taken a toll on Iraq.