Governmental advisor: Iraq will maintain its oil exports after reduction

Shafaq News / The economic advisor to the Prime Minister, Mathar Muhammad Salih confirmed on Tuesday that the Oil Ministry will study  reducing the oil production, but indicated that Iraq will maintain its oil exports after the reduction.

Saleh told Shafaq News, "The production reduction will be in several stages, the first of which is to reduce one million barrels for a period of two months, but Iraq will maintain its oil exports after this reduction."

He added that "the reduction will be a proportional according to a study that will be prepared by the Ministry of Oil to reduce oil production, and that the region is part of Iraq and will be included in the reduction according to the ministry's study."

Saleh said, "Iraq will reduce oil production by 22%," noting that "the reduction in general is 15% of global oil production."

Thamer Al-Ghadban, Iraqi Oil Minister (Deputy Prime Minister), said on Monday that his country will reduce an average of 1.06 million barrels of oil per day, according to the recent "OPEC +" agreement.

Al-Ghadban added, "The countries have agreed to cut 23 % of their oil exports, and this represents for Iraq 1.06 million barrels of oil per day, including Kurdistan Region's exports," according to Anadolu Agency.

Several oil countries in the (OPEC +) alliance announced on Sunday the completion of an agreement for the largest studied historical reduction in crude oil production by 10 million barrels per day, of which the alliance bears 9.7 million barrels per day.

The agreement includes reducing alliance oil production by 9.7 million barrels per day, and 300,000 bpd, US oil companies said they would cut on their part.

The 300 thousand barrels per share of American companies was supposed to belong to Mexico, which rejected the alliance’s decision to cut production by 400 thousand barrels per day, and confirmed that it would reduce its production by 100,000 barrels per day.

The decision to reduce starts from the beginning of next May for a period of two consecutive months, followed by another agreement to reduce production cuts to 8 million barrels per day until the end of 2020.

A third reduction in production will begin to be implemented, by 6 million barrels per day, which is two million barrels less compared to the previous agreement, beginning in early 2021 until April 2022.