Iraq says will make additional oil cuts in August

DUBAI: Iraq said on Thursday it 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 says the oil output cut in August will be over and above the agreed cut for August, according to a statement by Iraq’s oil ministry and state oil marketer SOMO.

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. Iraq is cutting output by 1.06 million bpd under the deal.

Iraq says it is committed to the OPEC+ agreement and will boost compliance. Iraq had told OPEC+ it would make up for over-production in May and June through larger cuts in later months. Iraq’s total oil exports for July averaged 2.763 million barrels per day (bpd).