The policy of reducing oil production in OPEC countries...a great discrepancy, and Iraq is the least

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[size=52]The policy of reducing oil production in OPEC countries...a great discrepancy, and Iraq is the least committed[/size]

[size=45]OPEC countries implemented only part of the new oil production cuts during the first month of the latest agreement to restrict supplies, according to data from the report issued by the organization yesterday.[/size]
[size=45]The Organization of the Petroleum Exporting Countries and its allies have pledged deep cuts in production this quarter in a bid to avoid surpluses and support global prices. Although the commitment of Kuwait and Algeria to reduce their quota appeared immediately, the restriction of Iraqi supplies was much less than agreed upon.[/size]
[size=45]Baghdad is known for its record of non-compliance with OPEC quota reduction agreements, as Iraq faces strong financial pressures and is keen to maintain its revenues. The country reduced its production by 98,000 barrels per day last January, approximately one-third of the reduction necessary to adhere to its quota, according to the organization’s report published yesterday. While the state said that it fully complies with its pledges.[/size]
[size=45]The uneven compliance with the cuts exacerbates the challenges of achieving balance in global oil markets that OPEC faces. The organization has also raised its expectations for oil supplies from competing countries during the current and next years by 150,000 barrels per day.[/size]
[size=45]“OPEC” and ensuring the stability of oil markets[/size]
[size=45]“Under current market conditions, the continued efforts of countries participating in the voluntary production reduction initiative remain crucial to achieving balance and stability in the oil market,” the Vienna-based organization’s secretariat said in the report.[/size]
[size=45]Crude oil prices have hovered around $80 a barrel on the London Stock Exchange so far this year, as a sense of abundant supplies from the United States and elsewhere allayed concerns about conflict in the Middle East. While the price of Brent crude futures contracts reached $82.6 per barrel at 12 noon in the British capital. OPEC, led by Saudi Arabia, maintained expectations that global oil demand would increase by a “strong” rate of approximately 2.2 million barrels per day, driven by China’s consumption, reaching a record level of just over 104 million barrels per day this year.[/size]
[size=45]OPEC forecasts for the global economy[/size]
[size=45]The group sees “positive signs of improving expectations for some parts of the global economy, most notably the United States,” said the organization’s Secretary-General, Haitham Al-Ghais, on the sidelines of a conference held in Dubai yesterday, Tuesday.[/size]
[size=45]But these big bullish expectations do not enjoy universal consensus. Amin Nasser, CEO of Saudi Aramco, said in statements from Dhahran on Monday that the company expects much slower growth in oil demand this year, but it is still strong, and may reach 1.5 million barrels per day. Major commodity trading companies such as Vitol and Gunvor Group also expressed similar views.[/size]
[size=45]As for Fatih Birol, Executive Director of the International Energy Agency, he said in exclusive statements to Bloomberg that the agency, which represents major consuming countries, expects demand to grow between 1.2 and 1.3 million barrels per day. Adding that this will result in the emergence of a “stable” market and “moderate prices.”[/size]
[size=45]Does Iraq’s current production meet the “OPEC+” agreement?[/size]
[size=45]Iraq has now met its oil production quota under the “OPEC+” alliance agreement, which aims to reduce production to support market stability, according to statements by Iraqi Oil Minister Hayan Abdul Ghani.[/size]
[size=45]He added, during an event held in Baghdad, that his country set the production ceiling at 4 million barrels per day, which is the limit agreed upon within the framework of the “OPEC+” agreement. He explained that exports amount to about 3.4 million barrels per day.[/size]
[size=45]Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC), has a spotty record of meeting its OPEC+ quota, pumping 4.2 million barrels per day in January, according to Bloomberg estimates.[/size]
[size=45]Last November, Iraq pledged to voluntarily reduce production by 220,000 barrels per day, during the period from January to March of this year, in coordination with some other producers in the coalition.[/size]
[size=45]Abdul Ghani noted that his country is committed to OPEC+ decisions, saying that “the average crude production after the recent cuts does not exceed 4 million barrels per day.”[/size]
[size=45]He also revealed that his ministry is holding talks with international oil companies operating in the Kurdistan region of Iraq with the aim of resuming oil production and export through the Turkish port of Ceyhan. It is noteworthy that shipments had been halted since March 2023 due to a dispute over the rights to obtain oil revenues. The Iraqi Oil Minister confirmed that “the dispute will be settled soon,” repeating similar statements previously.[/size]
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