Iraq and Saudi Arabia in a joint statement reaffirmed their commitments to the OPEC+ coordinated oil production cut pact to restore a balance in the oil market where prices are fair to both producers and consumers. The announcement came after an online meeting between Iraqi Prime Minister Mustafa al-Kadhimi and Saudi Crown Prince Mohammed bin Salman. Both leaders discussed the result of the Saudi-Iraqi Coordination Council.
Iraq has been a regular laggard in terms of its compliance with the OPEC+ production quota. Last month, the country pumped 3.842 million bpd of oil, higher than its 3.804 million bpd quota and 3.60 million bpd output in September. OPEC’s second-largest producer needs to make 698,000 bpd compensation cuts from September to December.
Iraqi officials have been blamed overproduction to the semi-autonomous Kurdish region which produced oil without compliance with oil output cuts. Iraqi federal government’s fields produced 3.396 million bpd of oil in October, compared to 446,000 bpd produced by the Kurdish region. Iraq exported 3.292 million bpd of crude last month, compared to Kurdish oil exports of 416,000 bpd. Domestic demand stood at 550,000 bpd in October, steady from September.
