Iraq said on Friday it would cut its oil production by another 400,000 barrels per day in both August and September to compensate for its overproduction in the past three months.
Iraq oil minister Ihsan Abdul Jabbar said in a joint statement with his Saudi counterpart Prince Abdulaziz bin Salman that Iraq’s output cut was in addition to the 850,000 bpd it had committed to cut in August and September under an OPEC+ supply pact.
The total cut to Iraq’s production in August and September will amount to 1.25 million bpd for each month.
“The reduction could be adjusted when the six secondary sources publish their production figures,” the joint statement said, referring to oil industry data providers such as the International Energy Agency.
The two ministers stressed their full commitment to an OPEC+ deal curbing oil production.
Abdul Jabbar confirmed Iraq’s firm commitment to the OPEC+ agreement, adding that Iraq would reach 100% conformity by the beginning of August.
The two ministers discussed in a phone call the latest developments in the oil markets, continued recovery in global demand and progress made towards implementing the OPEC+ agreement.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, began a record supply cut in May to bolster oil prices hammered by the coronavirus crisis.
OPEC, Russia and other producers agreed to cuts of 9.7 million bpd, or 10% of global output, from May 1. In July, they delivered 5.743 million bpd of the pledged reduction, equal to 94% compliance, a Reuters survey found.
Iraq agreed to cut output by 1.06 million bpd under the deal.
The Saudi and Iraqi energy ministers said efforts made by OPEC+ member states would enhance the stability of global oil markets, accelerate its balancing and send positive signals to the markets, the statement said.
OPEC oil output rose by more than 1 million bpd in July as Saudi Arabia and other Gulf members ended their voluntary extra curbs on top of the OPEC-led deal, and other members made limited progress on compliance.