The oil ministry initially announced in late November that it was slashing oil production by 220,000 barrels per day (bpd) starting from January 1 through to March 31, in addition to the 211,000 bpd cut already in place since April 2023.
On Saturday, the ministry said that it would extend the cuts up until the end of June, bringing Iraq’s daily oil production to four million bpd, after which production will be restored “gradually,” depending on the market.
The 211,000 bpd reduction will continue until the end 2024, the statement noted.
“This additional voluntary reduction comes to enhance the precautionary efforts that OPEC+ members are making to support the stability and balance of crude oil market,” it added.
The announcement out of Baghdad comes as fellow members of the oil cartel OPEC+ also declared on Sunday that they will be maintaining voluntary cuts totaling about 2.2 million bpd into the second quarter of 2024.
Oil revenue is Iraq’s main source of income, relied on to cover government costs and pay civil servant salaries. The country pocketed $97.5 billion from oil sales in 2023, a significant decline from 2022’s record-setting $115 billion.
Iraq exported over 99.5 million barrels of oil in February, at an average rate of 3.4 million bpd, according to the oil ministry’s monthly report released on Sunday. More than 103.5 million barrels were exported in January, averaging 3.3 million bpd.
