As it stated in
Such a move would likely derail the OPEC deal, at which point, all bets would be off.
When asked by CNBC how that would square with the possible extension of the OPEC deal for the remainder of 2017, Al-Luiebi said it would be “premature to comment,” since the extension is uncertain.
No matter; the OPEC deal is a six-month average, so Iraq could still lower output in subsequent months and comply with its commitments.
For many years after the 2003 U.S. invasion, Iraq was exempt from OPEC’s production quotas in order to help the country rebuild.
If Iraq continues down this road, it would not only reduce the effectiveness of the original OPEC deal – the cuts from January to June – but it would also make an extension very difficult.
As it stated in
Non-Compliant Iraq Now Claims OPEC Deal Is To Cut Exports
Asked if Iraq has had some special deal to cut from exports, Luaibi told Platts: “All countries – export.
“This time, for the first time, OPEC implied that production should be separate from export and their baseline is exports not production,” the minister told Platts.
The introduction of the “exports” wording by the Iraqi oil minister is not a result of language misinterpretation either.
OPEC’s latest Monthly Oil Market Report pegged Iraq’s production in February at 4.414 million bpd, according to secondary sources, while Iraq itself directly reported to OPEC production of 4.566 million bpd.
As Platts noted, Luaibi, who often speaks to the media in English, clarified several times during his interview that the deal’s base is exports, not production.
collected by :John Locas