DUBAI/LONDON: The Organization of the Petroleum Exporting Countries has received updated output compensation plans from Iraq and Kazakhstan.
The oil producers’ group said on Thursday the two countries aim to make up for their overproduction in the first seven months of this year by September 2025.
OPEC and other producers including Russia, known as OPEC+, have implemented a series of output cuts since late 2022 to support the market, most of which are in place until the end of 2025.
Iraq’s cumulative overproduction between January and July was 1.4 million barrels per day and Kazakhstan’s was 699,000 bpd, OPEC said.
FASTFACTS
• The two countries aim to make up for their overproduction in the first seven months of this year by September 2025.
• Iraq’s cumulative overproduction between January and July was 1.4 million barrels per day and Kazakhstan’s was 699,000 bpd.
Iraq’s Oil Ministry confirmed on Thursday it had submitted an updated compensation plan to the OPEC Secretariat and said it had “taken real and tangible steps to reduce production levels while working to compensate for the quantities that exceeded the designated production levels in previous months.”
The move underscored Iraq’s “dedication to supporting the joint efforts made by the OPEC+ group to achieve balance and stability in the global oil market, and to safeguard the interests of all producing and consuming countries alike,” it added.
Russia said earlier this month it exceeded its July production quota agreed with OPEC+ but pledged to abide by it and to compensate for excess output.
On Aug. 1, OPEC+ confirmed a plan to start unwinding the most recent layer of cuts of 2.2 million bpd from October, with the caveat that it could be paused or reversed if needed.
Prices
Oil prices steadied on Thursday as a drop in US fuel inventories provided a floor, after four days of declines on investor concern over the global demand outlook.
Brent crude futures gained 29 cents, or 0.4 percent, to $76.34 a barrel by 1330 GMT. US West Texas Intermediate crude futures rose 43 cents, or 0.6 percent, to $72.36.
“Crude oil prices have stabilized but continue to face downward pressure from ongoing macroeconomic factors. Concerns about China’s economic slowdown have weighed heavily on global demand,” said George Khoury, global head of education and research at CFI Financial Group.
Prices plunged on Wednesday as revisions to jobs data in the US added to concerns about crude demand after weak economic data out of China last week.
Underpinning prices, a government report on Wednesday showed US crude, gasoline and distillate inventories fell in the week ending Aug. 16 while refinery runs increased.
The larger than expected draw in US stocks limited losses.
