Iraq ramps up oil exports as OPEC+ eases cuts

[Map of Iraq]

Iraq has begun shipping more crude as voluntary production limits under the OPEC+ pact are gradually lifted, Reuters reported Sunday, citing state oil marketing company SOMO.

The move follows an agreement earlier this month by eight OPEC+ members to collectively raise output by 137,000 barrels a day starting in October. The producers’ group has been unwinding curbs since April after years of cutbacks aimed at stabilizing the market.

At current prices, the additional Iraqi exports could bring in hundreds of millions of dollars in fresh revenue, SOMO director general Ali Nizar Al-Shatari told Iraq’s state news agency. While he didn’t provide a precise figure for the increase, he noted that an extra 200,000 barrels per day would significantly bolster state finances.

Iraq exported an average of 3.38 million barrels per day in August, according to official data. SOMO now projects that September’s shipments will fall between 3.4 million and 3.45 million barrels daily.

Prime Minister Mohammed Shia al-Sudani has urged OPEC+ to reconsider Baghdad’s production quota, arguing that it should better reflect the country’s capacity.

Iraq has frequently produced above its agreed target, drawing pressure from fellow members to rein in supply. In April, Baghdad was among the producers that submitted plans to cut output further in order to offset earlier overproduction.

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