OPEC and allies to consider increasing supply cuts: Iraq oil minister

The Organization of the Petroleum Exporting Countries (OPEC) and its allies will consider deepening their existing oil output cuts by about 400,000 barrels per day (bpd) to 1.6 million bpd, according to Iraq’s Minister of Oil Thamer Ghadhban.

Ghadhban told reporters in Baghdad that OPEC and its non-member oil producing allies (collectively known as OPEC+) will discuss the possibility of increasing the supply cuts at meetings in Vienna later this week.

OPEC+ oil exporters have committed to slashing output for the last three years in order to balance the market and support prices. Their current deal, which agreed to cut supply by 1.2 million bpd from January this year, expires at the end of March.

Ghadhban added that Iraq, OPEC’s second largest oil producer, has exceeded 100% commitment with the supply deal and that an agreement capping production from the semi-autonomous Kurdistan region will further support the cuts.

Iraq exported crude at an average rate of 3.5 million bpd in November, according to the oil ministry on Sunday, while a Reuters survey found the country’s total oil output averaged 4.62 million bpd last month.