Iraq achieves its share of Opec production cut, ready to meet future demand

Opec and other producers agreed last year to cut oil production by 1.8 million barrels per day

Iraq has achieved its share of the production cut agreement reached by OPEC and non-OPEC producers at the end of last year but remains ready to meet future oil demand growth, according to a speech by Iraqi oil minister Jabar al-Luaibi on Monday.

"Iraq as the second largest producer in OPEC confirms its achievement to the commitment to implement the production cut and has recently announced its readiness to a further extension to the cut agreement," according to the speech which was delivered at an industry event in London by Falah Alamri, head oil marketer SOMO.

However, al-Luaibi said, Iraq is ready to meet any growth in the global oil demand "by maintaining production spare capacity, improving export infrastructure and the adoption of modern technology in exploration and production".

Members of the Organization of the Petroleum Exporting Countries and other producers led by Russia agreed last year to cut oil production by around 1.8 million barrels per day (bpd) mainly to tackle bloated crude inventories and support higher prices.

Under the deal, Iraq agreed to cut its oil production by 210,000 bpd.

Last week Iraqi Prime Minister Haider al-Abadi said Iraq was in favour of extending the current deal but did not specify for how long. Al-Luaibi had previously said that Iraq would support a six-month extension.

Al-Luaibi is due to meet Saudi energy minister Khalid al-Falih in Baghdad on Monday.

OPEC minister meet in Vienna on Thursday.