OPEC+ Coalition Increases Iraq’s Oil Production Quota

The "OPEC+" coalition has reached an agreement to elevate Iraq’s oil production share to 4.11 million barrels per day by the end of this year. This decision reflects a collaborative effort among member nations, which include Iraq, Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, to assess current global market conditions and future projections.

Commitment to Production Increase

The coalition reaffirmed its commitment to reinstating previously reduced production volumes, as declared in April and November 2023. The resumption of these reductions is set to commence in the upcoming month.

According to the new agreement, Iraq’s oil output will witness incremental increases starting in April. Specifically, Iraq’s allocation will rise by 12,000 barrels to reach 4.012 million barrels per day, with a similar increase projected for May, bringing the total to 4.024 million barrels per day. By December, production is expected to further escalate to 4.11 million barrels per day. Additionally, it is anticipated that Iraq’s production will exceed 4.22 million barrels per day during the session from September to December 2026.

Voluntary Production Cuts and Market Adaptability

Currently, the OPEC+ coalition is operating under an official reduction of 2 million barrels per day. This measure is scheduled to remain in effect until the conclusion of 2026. In April 2023, the coalition initiated a voluntary reduction of 1.65 million barrels per day, a strategy that will also persist through to the end of next year. Subsequently, in November 2023, another reduction of 2.2 million barrels per day was announced, which is slated to continue until the end of March.

The planned return of the reduced quantities, totaling approximately 2.2 million barrels per day, is set to begin in April. The coalition retains the flexibility to adapt to evolving market conditions, indicating that the phased increase could be temporarily halted or reversed if necessary.

In summary, the adjustments to Iraq’s oil production reflect a deft maneuver by the OPEC+ coalition to stabilize the oil market amid fluctuating demand and supply dynamics, while also addressing individual member states’ production targets.