You are here: Home » International » News » Others
Business Standard

Fully committed to OPEC+ oil cuts, not seeking any exemptions, says Iraq

Earlier on Wednesday, Oil Minister Ihsan Abdul Jabbar was quoted as saying that he has spoken about the exemption to key OPEC oil ministers in three separate meetings

OPEC | Opec oil | OPEC output

Reuters  |  DUBAI 

By Rania El Gamal

DUBAI (Reuters) - said on Wednesday it remained fully committed to the OPEC+ oil supply cut agreement, denying earlier media report that it was seeking an exemption from the reduction pact during the first quarter of 2021, Iraq's oil ministry spokesman said.

"The Ministry of Oil would like to categorically deny this baseless statement, and affirm that, to the contrary, remains fully committed to the April OPEC+ Declaration of Cooperation, and the compensation mechanism agreed to in June," the spokesman said in a statement.

Iraq's compliance with the current oil cuts was above 100% in August, and the Arab oil producer "will continue to perform at this elevated level, while compensating in August and September for the previous overproduction of 850,000 barrels per day", according to the OPEC+ agreement, the spokesman said.

Earlier on Wednesday, Oil Minister Ihsan Abdul Jabbar was quoted as saying that he has spoken about the exemption to key oil ministers in three separate meetings, according to a local newspaper in comments reported by state news agency INA.

The Organization of the Petroleum Exporting Countries and allies, a grouping known as OPEC+, are currently cutting output by 7.7 million barrels per day (bpd) until December to support prices as the coronavirus crisis hammers demand.

Abdul Jabbar said last month that would cut its oil production by an additional 400,000 bpd in both August and September to compensate for its overproduction in the three previous months.

On Wednesday, the Iraqi oil ministry spokesman said that if the full compensation volumes cannot be made by the end of September, Iraq will ask "for an extension of the compensation period to the end of November."

A key OPEC+ ministerial panel, known as the JMMC, which monitors compliance with the cuts and advises the OPEC+ group, meets next on Sept. 17.


(Reporting by Rania El Gamal; Editing by Franklin Paul and Lisa Shumaker)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, September 03 2020. 08:22 IST