The Organisation of Petroleum Exprting Countries (Opec) has received updated output compensation plans from Iraq and Kazakhstan, stating that they aim to make up for their overproduction in the first seven months of this year by September 2025, the producer group said on Thursday.
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 (bpd) and Kazakhstan’s was 699,000 bpd, Opec said.
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.