BAGHDAD: Iraq has assured the Organization of the Petroleum Exporting Countries (OPEC) it will fully comply with an agreement to cut oil supply in order to bolster crude prices, OPEC Secretary-General Mohammed Barkindo said on Sunday in Baghdad.
Iraq’s compliance stands now at 98 percent, the nation’s Oil Minister Jabar Al-Luaibi told reporters, after addressing a conference in the Iraqi capital, also attended by Barkindo.
Compliance with the deal agreed by OPEC and non-OPEC producers at the end of the last year to cut supply is “encouraging,” Barkindo told the forum.
General compliance with supply cuts by the oil producers was 86 percent in January and 94 percent in February, he added.
The market is already balancing, Barkindo said, adding stocks of crude were coming down.
Al-Luaibi said he was satisfied with the existing deal, but declined to say whether Iraq would support an extension, leaving it to an OPEC ministerial meeting planned in May.
The current deal, he said, “contains many positive elements and achieved a lot of targets; work is ongoing to reach the reduction of 1.8 million barrels per day” (bpd) agreed by OPEC and 11 other nations including Russia for their combined production in the first half of 2017.
The accord has lifted crude to about $50 a barrel. But the price gain has also encouraged US shale oil producers, which are not part of the pact, to boost output.
While Iraq is committed to achieving 100 percent of its target reduction, it will proceed with projects to boost oil production capacity to 5 million bpd before the end of the year, Al-Luaibi said.
OPEC’s second-largest producer, after Saudi Arabia, Iraq will proceed in parallel with exploration plans to increase its reserves by 15 billion barrels in 2018, to reach 178 billion barrels, he said.
Among the plans to increase output capacity from existing fields is a seawater injection plan, which is in process of being tendered, he added.
Iraq’s oil production has averaged 4.464 million bpd so far in March, a reduction of more than 300,000 bpd on levels before OPEC cuts were implemented from Jan. 1, the State Organization for Marketing of Oil (SOMO) said on Thursday.
Average crude exports were 3.756 million bpd in March, versus a record of more than 4 million bpd in November, according to SOMO.
Most of Iraq’s crude is exported from southern ports, the region where it is produced. Exports from the south averaged 3.2 million bpd in March, Al-Luaibi said.
Barkindo described as “very constructive” meetings he had on Saturday with Prime Minister Haider Al-Abadi and other Iraqi leaders in Baghdad.
Iraq’s natural gas output will triple to 1,700 million cubic feet per day (cfd) by 2018, as it implements projects to reduce flaring, Al-Luaibi told the conference.
Iraq has pledged to comply with oil cut deal: OPEC chief
Iraq has pledged to comply with oil cut deal: OPEC chief
Middle East aviation sector ‘champion of net profit’ — IATA
GENEVA: Net passenger profit in the Middle East’s aviation sector is the highest globally, providing “a great model for other areas of the world,” according to the International Air Transport Association’s director general.
Speaking at IATA’s global media day in Geneva, Switzerland, Willie Walsh praised the region’s focus on long-haul travel as well as its increasing efficiency in the industry.
In its latest financial outlook for the global airline industry, IATA announced that 2026 is set to be a record-breaking year in terms of net profit, with a forecast total of $41 billion.
Airlines are expected to achieve a record-breaking combined total net profit of $41 billion in 2026, up from $39.5 billion in 2025.
The Middle East is set to be the strongest region in terms of net profit margin and profit per passenger in 2026, as it was over the previous 12-month period.
In 2025, net profit was $28.90 per passenger, totaling $6.6 billion and leading to a net profit margin of 9.3 percent. For 2026, the IATA forecast the Middle East’s net profit margin will remain the same, but net profit per passenger will be $28.60, equating to $6.8 billion.
In contrast, Europe’s aviation sector saw net profit of $13.2 billion in 2025 but the margin was considerably smaller — 4.8 percent, working out at $10.60 per passenger. North America posted a net profit of $10.8 billion, working out to $9.50 per passenger with a net profit margin of 3.3 percent.
When asked to clarify which factors contributed to the region’s ranking as the highest for net profit, Walsh told Arab News: “The Middle East has clearly a much stronger focus on long-haul travel, strong premium demand, very good infrastructure availability, clear coordination between airports, suppliers, and regulators — all working together to ensure the effective operation of the industry,”
He added: “I think it is a great model for other areas of the world to look at.”
Reflecting on the role played by the Gulf in contributing to these figures, Walsh said he was “pleased to see the GCC look at a common safety regulator.”
He added: “Working together can enhance the overall benefit and security of operation. So, I think it’s a great example of where everybody is working in the same direction.”
The director general continued: “You’ve got alignment between all of the key players, and that helps to ensure that the operation of the industry there is as efficient as possible.”
He also said he was “very encouraged” by the investments that are being made by airlines, airports, and air navigation service providers in the Middle East.
According to the report, passenger demand continues to be robust, driven by long haul traffic and the expansion of hub carriers.
The global net profit margin is set to remain at 3.9 percent in 2026, the same level as the previous 12-month period.
Saudi Arabia will develop its aviation sector in 2026, with its newest airline Riyadh Air continuing to roll out. The company is expected to contribute over $20 billion to the non-oil gross domestic product and create more than 200,000 direct and indirect jobs.
The IATA report highlights how governments in the Middle East are doubling down on aviation infrastructure investments.
Saudi Arabia is seeking to boost its aviation capacity with the construction of King Salman International Airport, set to accommodate up to 120 million passengers by 2030 and 185 million passengers by 2050, and Red Sea International Airport.
Other developments in the region include expansion of Al Maktoum International Airport in the UAE.
