Iraq and Kazakhstan have pledged to make extra oil cuts in July, August, and September to make up for overproduction in the previous months. The additional reductions could help OPEC+ to accelerate the market’s rebalancing or provide other members with rooms to relax quotas during the months. OPEC+ 9.7 million bpd coordinated cuts are due to be eased to 7.7 million bpd in August. However, a monitoring committee will meet on July 15 to determine whether any changes are needed.
Iraq pumped 4.165 million bpd of crude oil in May, around 573,000 b/d higher than its quota of 3.592 million bpd. To make up the overproduction, Iraq has pledged to cut production to 57,000 bpd below the quota in June and to 258,000 bpd below the cap in July and August. This will bring Iraq’s production to around 3.535 million bpd in June, 3.334 million bpd in July and 3.546 million bpd in August. Despite the pledge, Iraq faces scepticism over its ability to deliver the curbs.
Meanwhile, Kazakhstan’s oil production was 160,000 bpd higher than its cap of 1.319 million bpd last month. It promised to reduce output to 15,000 bpd below the quota in July and 50,000 bpd in August and September. This will bring the country’s production to 1.304 million bpd in July and 1.347 million bpd in August and September.’
Nigeria and Angola, other regular offenders of the pact, have been given until June 22 to report their cut schedules, but have not done so yet. Nigeria and Angola produced some 288,000 bpd and 90,000 bpd above its quota, respectively.
