Iraq appears to be making little effort to comply with its Opec+ quota, consistently producing well above target despite having committed to fully compensate for earlier overproduction by September 2025. Rather than implementing the pledged compensation cuts in July, output increased to a seven-month high 4.25mn b/d according to the Opec Secondary Sources aggregate, a massive 250,000 b/d above target – 320,000 b/d above target when factoring in Iraq’s compensation plan (MEES, 9 August). Cumulative overproduction since January now stands at 46.9mn barrels (see chart 1).
Despite July's production increase, Iraq announced on 22 August that “the Ministry of Oil has taken real and tangible steps to reduce production levels” as it submitted another updated compensation plan to Opec. (CONTINUED - 936 WORDS)
