Iraq and OPEC+ States to Extend Production Cuts until 2025

Iraq, along with other OPEC+ countries including Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, participated in an in-person meeting in Riyadh during the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM).

The meeting aimed to strengthen the precautionary efforts of OPEC+ to support the stability and balance of oil markets. The participating countries decided to extend the additional voluntary cuts of 1.65 million barrels per day, announced in April 2023, until the end of December 2025.

Furthermore, these countries will extend their additional voluntary cuts of 2.2 million barrels per day, announced in November 2023, until the end of September 2024. After that, the 2.2 million barrels per day cut will be gradually phased out on a monthly basis until the end of September 2025 to support market stability. This monthly adjustment will be subject to change depending on market conditions.

In a spirit of transparency and collaboration, as stated by OPEC, the meeting welcomed Iraq’s pledge, alongside Russia and Kazakhstan, to achieve full conformity and resubmit their updated compensation schedules to the OPEC Secretariat for the overproduced volumes since January 2024, before the end of June 2024, as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).

The 38th OPEC and non-OPEC Ministerial Meeting is set to take place on the 1st  December 2024

Source: OPEC