Iraq’s oil exports have fallen by 8 percent or 300,000 barrels per day (bpd) so far in June, according to shipping data and industry sources, suggesting OPEC’s second-largest producer is getting closer to meeting its pledge in an OPEC-led supply cut deal.
The figures suggest while Iraq is making progress, it has yet to completely fulfil its pledge. OPEC+ will be scrutinizing compliance at meetings this week, after countries including Iraq and Nigeria pumped more than their targets in May.
In May, Iraq delivered 38 percent of its pledged output cut, according to a Reuters survey, much lower than top exporter Saudi Arabia. If exports in June hold steady, adherence wouldrise to at least 60 percent, based on Reuters calculations.
The south is the main outlet for Iraq’s crude, so a good part of its OPEC+ cut should show up in lower exports.
Iraq says it is in the country’s interest to comply with the deal and its oil minister, Ihsan Abdul Jabbar Ismail, said Iraq will export an average of 2.8 million bpd in June, implying supply will drop from current rates.
The country was reluctant to join previous OPEC-led supply cut efforts which began in 2017 and was at times OPEC’s least compliant member with the deal.
Still, exports from northern Iraq are also coming down in June. So far, total northern exports stand at about 350,000 bpd, down about 130,000 bpd from May, tanker data shows.
This level would be in line with Iraq’s request to Kurdish authorities to export a maximum of 370,000 bpd in June.