Iraq exceeded its OPEC + oil production quota in October

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Iraq’s crude oil production rose in October and exceeded its quota and offset target under the OPEC + deal, Argus reported Thursday, citing the national oil marketing company SOMO.

Oil production in Iraq, OPEC’s second-largest producer and a non-compliant regular member of the OPEC + Compact, rose to 3.842 million barrels per day (bpd) in October, up 242,000 bpd from September, and slightly above its quota of 3.804 million bpd for August-December.

Considering Iraq pledged to further cut oil production between September and December to compensate for its non-compliance earlier this year, the number two OPEC exceeded that 203,000 bpd compensation schedule by October, according to SOMO figures cited by Argus.

Iraq not only increased its oil production in October, but it is also estimated that it increased its exports of crude oil last month.

Iraq exported an average of 2.876 million b / d in October, up more than 200,000 b / d from September, according to data from the Petroleum Ministry, cited by Iraq Business News. Adding exports from Kirkuk, Kurdistan, the daily average stands at 2.968 million bpd.

This pushed the country’s oil revenues – despite low prices – to US $ 3.43 billion, the average selling price of Iraqi oil to US $ 38.48 per barrel.

Iraq is one of the most oil-dependent economies, even by OPEC standards, and saw its budget revenues plummet after the oil price collapse in March.

Oil revenues are critical to Iraq’s budget revenues, but in recent months Iraq has come under pressure from its Saudi-led OPEC + partners to stop cheating on their production quotas and are finally starting to comply with the OPEC + agreement.

Last week, reports revealed that Iraq was one of three countries likely to oppose a proposal by Saudi Arabia and Russia to postpone production cuts of 7.7 million b / j instead of slackening them by 2 million bpd from January in light of the current price of oil. situation and outlook. Iraq, however, was quick to deny the report: Oil Minister Ihsan Abdul Jabbar Ismaael said Baghdad would support any decision by OPEC and its partners regarding oil production.

By Tsvetana Paraskova for OilUSD

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