New agreements between OPEC and its allies to limit oil production have run into problems as many participants, especially Iraq, did not comply with the terms of the agreement. writes about this Bloomberg.
According to the cartel’s report, Baghdad exceeded the quota agreed in February by approximately 200 thousand barrels per day (b/d).
In February, the second month of the updated OPEC+ agreement, Iraq reduced production by only 14 thousand barrels to 4.2 million barrels per day, and the limit set for the country was approximately 4 million barrels. In January, the deviation from the quota was around 200 thousand barrels per day. While Saudi Arabia, the UAE, Kuwait and Algeria fully fulfill their obligations, the discipline to implement the agreement as a whole is lacking precisely because of Iraq.
Iraqi Oil Minister Hayyan Abdul Ghani claimed last week that the country was producing within a quota of 4 million barrels per day. Any deviations would be offset by additional cuts, he said.
Other members of the expanded OPEC+ alliance also have discipline issues. According to tanker tracking data, Russia, which received special conditions to reduce oil production and exports, is experiencing difficulties with export restrictions. Seaborne oil supplies have risen to the highest level in a year. Wrote previous edition.
OPEC+ members will next meet in early April to discuss the market situation, and the alliance’s ministers will meet at their headquarters in Vienna in early June.
Previously supply Russian coal shipments to Asia fell significantly during the year.