Iraq will comply with OPEC-led efforts to curb supplies, even as the cartel’s second-largest producer after Saudi Arabia said it is striving to boost its export capacity, the Financial Times newspaper quoted Iraq’s Oil Minister Jabar al-Luaibi as saying.
Speaking at a conference hosted by the Chatham House think tank in London, Luaibi said Iraq’s total export capacity would reach 5m barrels a day by the end of 2018.
Despite its long-term goal to increase output and exports, Luaibi said sales from ports in the oil-rich southern part of Iraq have been “confined” as part of a supply cut agreement between OPEC and allies including Russia.
Iraq has been under fire over the past year for not fully sticking to its share of cuts. But the minister said: “Iraq has made it clear it will comply with OPEC declarations in good spirit, genuine spirit.”
December output stood at 4.4m b/d.
The deal aims to reduce excess stockpiles and raise prices after the oil downturn battered the economies of resource-rich states. Since the start of 2017, global producers have curbed output by 1.8m b/d and the deal has been extended for all of this year.
Luaibi said the oil market was improving, and the production cuts deal was bearing “fruits” including a higher oil price. Brent crude, the international benchmark, has risen above $70 a barrel in recent days.
Source: The Baghdad Post