Iraq began implementing the agreement on oil output cut

According to Iraqi Minister of Oil, the country is working on rebalancing demand and supply and thus keeping oil price stable in the future.

06.Jan.17 12:11 PM
By Anna Tuzova
Photo Toinnov.com

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Iraq began implementing the agreement on oil output cut

Iraq started oil production lowering procedures with the beginning of the New Year in line with the OPEC decision, according to Jabbar Ali Hussein Allaibi. He said, that his country works jointly with other oil exporters from OPEC and independent oil producers on limitation of the supply on the world petroleum market to rebalance supply and demand and to keep oil prices stable in the future.

The OPEC meeting took place in the late November in Wien, according to its results it was decided to cut the cartel’s oil output to the level of 32,5 million barrels per day. Thus OPEC members should reduce the average petroleum production almost by 1,2 million barrels.

The main limitation is accounted for Saudi Arabia, which has to remove 486 thousand barrels per day from the market. Iraq has to lower the production by 210 thousand barrels.

In the early December 11 more non-OPEC countries joined the agreement: Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, the Republics of Sudan and South Sudan. Taking into account these countries, the overall decrease in the first two quarters of 2017 amounts to 1,7-1,8 million barrels per day.

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