Saudi Arabia, Iraq stress full commitment to OPEC+ deal

CAIRO: Saudi Arabia’s energy minister and Iraqi counterpart stressed, in a phone call, their countries’ full commitment to an OPEC+ deal curbing oil production, Iraqi state news agency said on Friday citing a joint statement from both ministries.

The two ministers discussed the latest developments in oil markets, continued recovery in global demand and progress made towards implementing the OPEC+ agreement.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, began a record supply cut in May to bolster oil prices hammered by the coronavirus crisis.

OPEC, Russia and other producers, a group known as OPEC+, agreed to cuts of 9.7 million bpd, or 10% of global output, from May 1. In July, they delivered 5.743 million bpd of the pledged reduction, equal to 94% compliance, the Reuters survey found.

However, OPEC oil output rose by over 1 million barrels per day (bpd) in July as Saudi Arabia and other Gulf members ended their voluntary extra curbs on top of the OPEC-led deal, and other members made limited progress on compliance.

Saudi Arabia had agreed to cut output by 2.5 million bpd under the OPEC+ deal.

Iraq agreed to cut output by 1.06 million bpd under the deal and Iraqi oil minister Ihsan Abdul Jabbar said his country would make an additional cut in its oil production of about 400,000 barrels per day in August to compensate for its overproduction over the past period under the OPEC+ supply reduction pact.

“Iraq’s steadfast to commitment to OPEC+ deal,’, said Abdul Jabbar, adding “it will reach 100% compliance by August”.

Saudi and Iraqi energy ministers said efforts made by OPEC+ member states would enhance stability of global oil markets, accelerate its balancing and send positive signals to the markets, statement added.