Iraq’s oil ministry has stated that it is fully committed to compensating for any crude oil overproduction in 2024, referencing estimates by secondary sources that Iraq exceeded its production target by 203,000 barrels per day in May.
The ministry said it is “committed to the production level required in the agreement, of 4 million barrels per day, for June and the subsequent months, in addition to compensating the surplus production since the beginning of this year throughout the compensation period, which will run until September 2025.”
This announcement comes as OPEC+ (the Organization of the Petroleum Exporting Countries and its allies, including Russia) has implemented a series of output cuts since late 2022 to support the oil market. On June 2, OPEC+ agreed to extend 3.66 million barrels per day of cuts by a year until the end of 2025 and extend the latest cut of 2.2 million barrels per day until the end of September, with a gradual phase-out over the course of a year from October.
Ahead of the OPEC+ meeting, Iraq’s oil minister had stated on May 12 that the country was committed to the voluntary production cuts agreed with OPEC. The latest statement from the Iraqi oil ministry reaffirms the country’s commitment to complying with the OPEC+ production agreement.