Iraqi President says country supports OPEC-led oil production cuts

Iraqi President Fuad Masum on Monday said his government supports an agreement by the Organization of Petroleum Exporting Countries (OPEC) to cut oil output.

ERBIL, Kurdistan Region (Kurdistan 24) – Iraqi President Fuad Masum on Monday said his government supports an agreement by the Organization of Petroleum Exporting Countries (OPEC) to cut oil output.

Masum made the comments during a meeting with OPEC Secretary-General Mohammad Barkindo in Baghdad.

In his meeting with Barkindo, the Iraqi President stressed the “need to support the deal to cut crude oil supply,” Reuters reported.

There were no details regarding how this would affect the Kurdistan Region at the time of publishing this report.

Iraq, OPEC’s second-largest producer, has reduced its production in line with the organization’s goal to cut supply by approximately 1.2 million barrels of oil per day (bpd) as part of an agreement with Russia and other nations.

According to Reuters, OPEC and those non-member producers are cutting their combined oil output by 1.8 million bpd until the end of 2018.

A follow-up meeting is expected to be held in June where OPEC and non-OPEC oil ministers may alter the agreement based on the conditions of the market at the time.

Meanwhile, earlier this month, Iraq said it would reduce its petroleum products imports by 25 percent while crude refineries are being repaired following the Islamic State (IS) war.

In a statement published on the Oil Ministry’s website, Iraqi Oil Minister Jabar al-Luaibi said the country would cut its imports of petroleum products without providing a specific date for the reduction.

Luaibi explained that Iraq was producing more oil products by processing natural gas liquids and adding more production units at refineries in the central and southern parts of the country.

Following Iraqi Prime Minister Haider al-Abadi’s “final victory” announcement over IS last December, the government said its focus was now on rebuilding its economy, calling on foreign investments for major projects.

The Iraqi government has also started reviving its largest oil refinery, the Baiji refinery complex (north of Baghdad) which once produced up to 300,000 bpd.

When IS emerged in 2014, the militant group overran Baiji causing severe damage to the refinery. Iraqi forces eventually recaptured it in 2015.

The three years of war with the extremist group as well as a significant drop in international oil prices have contributed to Iraq’s failing economy.