Iraq pledges to deepen oil output cuts

dubai — Iraq said on Friday it would cut its oil production by another 400,000 bpd in both August and September to compensate for its overproduction in the past three months.

Iraq oil minister Ihsan Abdul Jabbar said in a joint statement with his Saudi counterpart Prince Abdulaziz bin Salman that Iraq’s output cut was in addition to the 850,000 bpd it had committed to cut in August and September under an Opec+ supply pact.

The total reduction to Iraq’s production in August and September will amount to 1.25 million bpd for each month.

“The reduction could be adjusted when the six secondary sources publish their production figures,” the joint statement said, referring to oil industry data providers such as the International Energy Agency.

The two ministers stressed their full commitment to an Opec+ deal curbing oil production. They also discussed in a phone call the latest developments in the oil markets, continued recovery in global demand and progress made towards implementing the Opec+ agreement.

Crude set for 2% weekly gain

Oil dipped below $45 a barrel on Friday on worries that a demand recovery would slow due to a resurgence of coronavirus cases, with Iraq’s pledge providing some support.

Brent crude fell 56¢, or 1.2 per cent, to $44.53 by 1345GMT. US West Texas Intermediate crude slipped 44¢, or 1.1 per cent, to $41.51.

Both benchmarks are set for weekly gains of more than two per cent. —