Shafaq News/ Iraq's agreement to voluntarily reduce its crude oil production by approximately 430,000 barrels per day does not align with Iraq's financial needs, economist Nabil Al-Marsoumi said.

In a Facebook post, Al-Marsoumi expressed concern over Iraq's choice to cut its production quota under the OPEC+ agreement, pointing out that "OPEC+ production quotas are based on 2018 levels, which set Iraq's quota at 4.65 million barrels per day, while Russia and Saudi Arabia each have quotas of 11 million barrels per day."

Al-Marsoumi noted that Iraq had already complied with a mandatory reduction imposed by OPEC+ two years ago, which involved a cut of around 220,000 barrels per day to support global oil prices, criticizing Iraq's agreement to two additional voluntary cuts totaling approximately 430,000 barrels per day, making it "one of only eight countries out of 23 in OPEC+ to undertake such reductions."

"Iraq should not have agreed to these voluntary cuts, particularly given the country's need to produce more than its current quota of 4 million barrels per day due to substantial financial demands driven by increased public spending." He suggested that Iraq should have sought to revise its baseline production level, proposing an increase to 5 million barrels per day, similar to the UAE's successful negotiation two years ago.

Earlier, the Iraqi Ministry of Oil announced it had taken concrete steps to reduce oil production levels in line with OPEC+ decisions. The ministry reaffirmed its commitment to the voluntary production cuts agreed upon and emphasized its seriousness in adhering to these reductions to stabilize global oil markets.

The ministry detailed that it has implemented significant measures to lower production levels while working to offset any excess quantities produced in recent months. Additionally, it has submitted an updated compensation plan to the OPEC Secretariat, outlining the actions to ensure full compliance with the organization's commitments.

In July, the ministry affirmed Iraq's commitment to the agreed voluntary cuts and stated that it would address any production surpluses starting early next year. It confirmed adherence to the agreed production level of 4 million barrels per day for July and the coming months, with a plan to compensate for excess production from the beginning of the year through a compensation period until September 2025.

A source also revealed to Reuters that starting in September, Baghdad plans to reduce its oil production by lowering exports to 3.3 million barrels per day or less, down from 3.43 million barrels per day. The plan includes reducing domestic consumption to 500,000 barrels per day from 570,000 barrels per day and requesting the Kurdistan Regional Government to cut its production to 50,000 from 150,000 barrels per day.