Dubai — Iraq is committed to the OPEC+ output cuts and will only boost its future crude production if there is demand from international oil markets, a deputy oil minister told the state-run Iraqi News Agency Feb. 9.
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"Iraq is committed to the [OPEC+] agreement to cut production in light of the current challenges facing the international oil market and global oil producers due to the coronavirus that led to the contraction and recession in the global economy," Karim Hattab told INA.
"The increase in oil prices is a result of the commitment of producing countries to the agreement."
Iraq, OPEC's second largest producer, which currently has a production capacity of around 5 million b/d, does not expect to raise its output in the near future. "Any future increase in production or exports hinges on oil market needs," he added.
Iraq produced 3.807 million b/d of crude in January, including from the semi-autonomous Kurdistan region, the country's State Oil Marketing Organization said Feb. 3, below its OPEC+ quota of 3.857 million b/d, which is effective through March.
According to data compiled by the OPEC+ Joint Ministerial Monitoring Committee and seen by S&P Global Platts, Iraq overproduced its quota by a cumulative 626,000 b/d from May through December 2020, which it is required to make up through so-called "compensation cuts" by March.
In the Feb. 3 statement, SOMO said its January over-compliance means it has 576,000 b/d of compensation cuts remaining.
Going forward, the oil ministry's priorities are to boost gas production and develop the refining sector, Hattab added.