According to preliminary April data obtained by S&P Global Commodity Insights from SOMO, Iraq’s crude oil exports fell by 10,000 barrels per day (bpd), or 0.3%, for s establish at 3.413 million b/d. This slight decline compared to 3.423 million b/d in March comes against a backdrop of increased compliance with production cuts mandated by OPEC+ (Organization of the Petroleum Exporting Countries).
OPEC+ pressures and compliance
Iraq has been under constant pressure to reduce production in order to comply with OPEC+ production cuts. During the months of January, February and March, the country exceeded its production ceiling by a cumulative 602,000 b/d, according to the OPEC secretariat. In March, production stood at 4.28 million b/d, exceeding the quota of 4 million b/d. Iraq remains the least compliant member of the OPEC+ alliance.
Compensation strategies
Faced with these overruns, Iraq, in collaboration with Kazakhstan, has committed to “compensating” for the overproduction of their OPEC+ quotas by nearly a million b/d since the start of the year, by adding reductions additional production from May to December. This initiative, announced during briefings organized by the OPEC secretariat with secondary sources, including Platts, aims to restore balance to the global oil market.
Export details and regional impacts
In April, 3.364 million b/d were shipped from southern Gulf terminals, down slightly from 3.377 million b/d in March. Furthermore, exports through Turkey via the port of Ceyhan remain suspended since March 2023, which has forced many producers in the Kurdish region of northern Iraq to divert their sales to local traders at heavily discounted prices. .
Adjustments to Iraq’s oil exports illustrate the complex challenges of adhering to OPEC+ quotas amid geopolitical and economic tensions. These efforts are crucial for the stability of the global oil market, but they require significant sacrifices from producers.
