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Iraq seeks exemption from OPEC output deal

October 24, 2016 at 3:59 pm

Oil prices came under pressure today as Iraq said it wanted to be exempt from an OPEC deal to cut production, Reuters reported.

Losses, however, were capped by Iran saying it would encourage other members to join an output freeze.

Iraqi Minister of Petroleum, Jabar Ali Al-Luaibi, said Baghdad wants to be exempt from any production cut the Organisation of the Petroleum Exporting Countries is aiming to achieve.

Baghdad is aiming to expand its market share, which would be put at risk by reducing its production rate.

Falah Al-Amiri, head of Iraq state oil marketer SOMO, added that the country’s market share had been compromised by the wars it has fought since the 1980s.

“We should be producing nine million [barrels per day] if it wasn’t for the wars,” he said.

OPEC announced plans last month to reduce its output to between 32.5 million barrels per day (bpd) and 33 million bpd, from September’s 33.39 million bpd. The group will iron out the details of how it will hit the target at its next meeting in Vienna on 30 November.

Iraq said it could raise output slightly this month from September’s 4.774 million bpd.