Iraq affirms OPEC+ commitment to production rates

ERBIL, Kurdistan Region - Iraq’s oil minister on Saturday affirmed the commitment of the OPEC+ alliance of oil-exporting countries to the agreed cuts in production amid a struggling global economy and as winter sets in. 

“The member states of the organization are committed to production rates and to the percentages and quantities of cuts scheduled until the end of 2023,” Iraqi Oil Minister Hayan Abdul Ghani said during an online OPEC+ ministerial meeting, as reported by state media.

The ministers from the 13-nation OPEC group and Russian-led exporters met in Vienna in October and agreed to cut oil production by two million barrels per day starting from November.

Ghani added that the decision to reduce production quantities was taken in order to “achieve more stability and balance for the oil market,” while another OPEC+ ministerial meeting is expected to be held on Sunday. 

The sharp cut in oil production was heavily criticized by the US, who relies mainly on oil imports to heat the country.

Oil prices increased amid shortfalls following Russia’s invasion of Ukraine in February, with the US repeatedly urging members of the oil cartel to increase their oil production in an effort to balance the market. 

The Iraqi government depends on oil revenues to pay the salaries of civil servants and cover the costs. The country’s economy is once again booming as oil prices are increasing globally despite suffering in much of 2021 due to record-low oil prices. 

In November, Iraq earned nearly a billion dollars less in oil revenues than it did in October, as the country exported over 99 million barrels of crude oil at an average rate of 3.3 million barrels a day with each barrel selling for $82.4. The country’s total revenue was over $8.2 billion, which fell nearly a billion short of October’s $9.25 billion revenue.