Iraq is complying with the OPEC+ oil cut agreement reached in April despite reports claiming that it is facing difficulties in doing so, OPEC said in a statement on Thursday, citing Iraqi Minister of Finance and Acting Oil Minister Ali Allawi
MOSCOW (Pakistan Point News / Sputnik - 14th May, 2020) Iraq is complying with the OPEC+ oil cut agreement reached in April despite reports claiming that it is facing difficulties in doing so, OPEC said in a statement on Thursday, citing Iraqi Minister of Finance and Acting Oil Minister Ali Allawi.
Earlier in the month, Reuters reported, citing sources, that Iraq was struggling to decrease its oil production by a record one million barrels per day under the deal between OPEC and non-OPEC entities because the authorities were finding it hard to negotiate the distribution of cuts with major foreign producers operating on its territory.
"Allawi emphasized in a statement Iraq's commitment to the voluntary production adjustment agreement reached at the 9th and 10th (Extraordinary) OPEC and non-OPEC Ministerial Meetings held on 9 and 12 April, respectively," OPEC said in a statement.
Earlier in the day, Executive Director of the International Energy Agency Fatih Birol said that he was working closely with Iraq, which is struggling to cut production, and was also helping the middle Eastern nation deal with an electricity situation.
OPEC and non-cartel oil producers agreed on April 12 to a collective reduction in output by 9.7 million barrels per day throughout May-June in a bid to stabilize the market. Oil giants operating in Iraq, including BP, Exxon Mobil, Lukoil and Eni, have reportedly refused to proceed with the cuts. Since the bigger part of Iraq's oil output is produced by foreign companies, their consent will be essential for Baghdad to implement its part of the deal.
