07:00 GMT +325 March 2017
Live
    Oil

    Iraq Begins to Cut Oil Production in Line With OPEC Deal

    © REUTERS/ Stefan Wermuth
    Business
    Get short URL
    0 22951

    Baghdad has started cutting oil production in accordance with the OPEC agreement. The reduction will cease once world market oil prices rise.

    BAGHDAD (Sputnik) — Iraq has begun to cut oil production since the start of the new year, in line with the Organization of the Petroleum Exporting Countries (OPEC) agreement, Iraqi Oil Minister Jabar Ali Luaibi said on Thursday.

    "Iraq affirms its commitment to the OPEC decision… by putting in place a studied plan to reduce production from the country's fields from the start of the new year," the minister said.

    Luaibi noted that the reduction would cease once world market oil prices rose.

    On November 30, the OPEC members agreed to reduce output by 1.2 million barrels per day from January 2017 with the aim to stabilize oil prices. Non-OPEC countries that expressed a desire to participate in the agreement, including Russia, are expected to curtail oil production by a total of 600,000 barrels daily.

    Iraq originally declined to take part in the agreement citing the need to fund the war against Daesh (banned in Russia and other states) terrorists who seized a large part of the country's territory in 2014. However, the country joined the OPEC deal promising to reduce oil production by 210,000 barrels per day to 4.351 million barrels per day.

    Never miss a story again — sign up to our Telegram channel and we'll keep you up to speed!

    Related:

    Oil Prices Rally Past $58 for 1st Time Since 2015 as Producers Cut Output
    Global Oil, Natural Gas Prices to Remain Volatile in 2017 - Moody’s
    OPEC, 11 Non-Cartel Oil Producers Impose 6-Month Production Cuts Since January 1
    Tags:
    oil production, OPEC, Jabar Ali Luaibi, Iraq
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment