Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Iraq cuts 650,000 b/d from southern fields in May to comply with OPEC+ cuts: report

Oil | Crude Oil | Gasoline | Coronavirus

China under pressure to export more refined products after Q2 oil shopping spree

Oil

Platts Market Data – Oil

Capital Markets | Commodities | Oil | Crude Oil | Refined Products | Fuel Oil | Gasoline | Jet Fuel | Naphtha | Marine Fuels | Equities | Financial Services | Banking | Non-banks | Private Markets

North American Crude Oil Summit, 3rd annual

Oil | Jet Fuel | Shipping

Grounded passenger flights boost Japan NYK's Apr-Jun air cargo demand by 63% on year

Iraq cuts 650,000 b/d from southern fields in May to comply with OPEC+ cuts: report

Highlights

Iraq needs to cut production by 1.061 million b/d in May, June

Cuts in south spit between state-run and IOC fields

Iraq has struggled to comply with OPEC+ cuts in the past

Dubai — Iraq, OPEC's second largest oil producer, has cut 650,000 b/d from it southern fields to comply with OPEC+ cuts of 1.061 million b/d agreed for May and June, an official from state-owned Basra Oil Co told state-run Iraqi News Agency on Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The cuts are split between state-run fields and those operated by international oil companies, Khaled Abbas, the deputy director general of Basra Oil Co told the agency.

Output from state-run fields, including Luhais, Ratawi, and Nahran Omar, was trimmed by 350,000 b/d, while production from Exxon Mobil's West Qurna 1 was cut by 50,000 b/d, Lukoil's West Qurna 2 by 70,000 b/d and the remaining reductions came from Eni's Zubair and BP's Rumaila, he said.

OPEC+ is trimming a record 9.7 million b/d from its May and June production to help soak up excess oil. The cuts among the 23-member countries will gradually ease through April 2022. Saudi Arabia, the UAE and Kuwait said on Monday they would cut an extra 1.2 million b/d from their June output, on top of their OPEC+ commitments, to help balance the oil market.

Biggest hit

Iraq in 2019 struggled to stick to its OPEC+ quota, pumping more than is allowed. However the coronavirus epidemic is taking a toll on its oil industry.

Iraq took the biggest hit to production for OPEC members in April of 110,000 b/d as low fuel demand and a lack of product storage space forced its refineries to reduce crude runs sharply, according to the latest S&P Global Platts OPEC survey. Production was 4.54 million b/d in April.

Unlike other fellow producers in OPEC such as Saudi Arabia, Kuwait and the UAE, Iraq was not able to open the taps despite the expiry of the old OPEC+ cuts agreement in March.

For example, Iraq's state oil marketer SOMO in April struggled to sell crude to India, one of its biggest customers.

Iraq is struggling with the outbreak of the coronavirus and lockdowns that have taken their toll on its oil industry and forced Malaysia's Petronas to evacuate staff in March and stop production from the southern oil field of al-Gharraf, which pumped some 90,000 b/d.

Iraq also wants to form a delegation to discuss renegotiating technical service contracts with international oil companies in light of current oil-market developments, according to the government program presented by the new prime minister, Mustafa al-Kadhimi.