Iraq cuts July oil output as part of OPEC+ deal

Iraq’s Oil Marketing Company (SOMO) has significantly reduced oil output from the Basra crude supplies destined for Asia in July, in implementation of the OPEC+ agreement to reduce production, Reuters quoted informed sources as saying.

The Iraqi supply cut comes after a similar reduction by the world’s largest oil exporter, Saudi Arabia.

Members of the Organisation of Petroleum Exporting Countries (OPEC), including Iraq and Saudi Arabia, agreed earlier this month with allies including Russia, a grouping known as OPEC+, to extend production cuts for a third month in July by a record 9.7 million barrels per day (bpd).

Reuters quoted one source as saying that for July, Basra crude supply cuts to Asia ranged between 30 and 100 per cent of the contracted volumes, adding that the degree of reduction varied from one buyer to another.

READ: OPEC, Russia extend record oil cuts to end of July

The sources said the output reductions for Indian buyers ranged from 36-75 per cent of the contracted monthly volumes.

According to the sources, Basra crude supplies for July are expected to decrease by nearly 15-20 per cent.

SOMO announced on Monday that Iraq intends to export 2.8 million barrels of Basra crude from its southern ports per day in June.