Iraq holds oil output steady despite OPEC downturn
Shafaq News
Iraq maintained stable production levels, despite an OPEC+ agreement to implement gradual increases, due to reduced supplies from Iran and Venezuela driven by US sanctions, according to a survey by Reuters on Monday.
The survey indicated that under an agreement covering December output and involving eight OPEC+ members, five OPEC producers: Algeria, Iraq, Kuwait, Saudi Arabia, and the United Arab Emirates, were set to raise production by about 85,000 bpd before accounting for compensation cuts totaling 135,000 bpd, which applied to Iraq and the UAE, significantly reducing the net increase.
However, the actual increase by the five producers did not exceed 20,000 bpd, while Iraq’s output remained largely unchanged. Citing data and OPEC secondary sources, Reuters said that Baghdad complied with its production quota, despite differing estimates from some external sources regarding actual output levels.
Total OPEC output averaged about 28.40 million barrels per day in December, down 100,000 bpd from the revised November level, Reuters noted, attributing the decline to lower production in Iran and Venezuela, which offset the planned increases under the OPEC+ deal.
OPEC+ slowed the pace of its monthly output increases amid concerns over a potential global supply glut, with several members nearing capacity limits and others required to make compensatory cuts for earlier overproduction.
Iranian crude production fell by about 100,000 bpd in December, affected by US sanctions aimed at curbing Tehran’s oil exports, while Venezuelan output declined by around 70,000 bpd, with expectations that supply pressures will persist in the coming period.
