Iraq Stresses Commitment to OPEC+, Does Not Oppose Extending Production Cuts

Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)
Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)
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Iraq Stresses Commitment to OPEC+, Does Not Oppose Extending Production Cuts

Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)
Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)

Iraqi Oil Minister Hayyan Abdul-Ghani resolved a debate that arose on Saturday after comments he made about his country’s refusal to agree to any new cuts in production, when the OPEC+ alliance meets in June.

In remarks to Iraq's state news agency INA, the minister said the country is committed to voluntary oil production cuts agreed by OPEC and is keen to cooperate with member countries on efforts to achieve more stability in global oil markets.

On Saturday, both Bloomberg and Reuters reported that Abdul-Ghani stated, at a press conference in Baghdad during the launch of a licensing round for oil and gas exploration, that Iraq would not support extending the reduction in oil production during the upcoming OPEC Plus meeting.

INA quoted the minister as saying that the Ministry of Oil “is keen on the cooperation of member states and working to achieve greater stability in the global oil market by agreeing on voluntary reduction programs.”

A high-level source had previously informed Asharq Al-Awsat that what was reported about Abdul-Ghani was inaccurate, adding that a clarification statement would be issued in this regard.

The members of the OPEC+ alliance are scheduled to meet in early June to decide on oil production during the third quarter of the year. OPEC and its allies, led by Russia, are widely expected to extend current quotas to help boost the oil market.

Iraq has faced difficulties in complying with its target of 4 million barrels per day (bpd) in recent months, which includes a voluntary reduction of 223,000 bpd of oil below production levels for December 2023.

In April, Iraq pumped 4.24 million bpd of crude oil, including 200,000 bpd from the semi-autonomous Kurdistan region, over which the Iraqi federal government says it has no control.



Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)
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Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)

Saudi Arabia has long followed a clear and transparent approach to preserving stability in global energy markets. Historically, it has consistently adhered to all decisions issued by the OPEC+ alliance and played a leading role alongside other producers to ensure compliance and promote the collective good.

Recently, the Kingdom briefly increased production volumes. However, the additional output was neither marketed domestically nor exported abroad. Instead, it was directed as a precautionary measure to strengthen strategic reserves, improve supply flows between the country’s eastern and western regions, and rebalance stocks held in overseas storage facilities.

Asharq Al-Awsat reached out to energy specialists to understand the significance of this move for energy security. Experts explained that building strategic reserves allows Saudi Arabia to respond swiftly to customer needs in the event of political crises, regional wars, adverse weather, or other unforeseen disruptions.

Fouad Al-Zayer, former head of data services at OPEC and an energy expert, said the Kingdom maintains millions of barrels in storage both inside and outside its borders. These reserves serve as a buffer during emergencies, enabling the country to compensate for supply shortfalls within a short timeframe. He emphasized that this stored crude is strategically critical in the face of geopolitical tensions and conflicts.

According to Al-Zayer, Saudi Arabia relies on an extraordinary reserve capacity unmatched by any other producer. The country currently produces more than 9 million barrels per day, with the capability to pump even higher volumes if needed. He noted that Saudi reserves alone account for 3 million barrels per day out of roughly 5 million barrels in global spare capacity, underscoring Riyadh’s central role in stabilizing markets and upholding its commitments under OPEC+ agreements.

He added that Saudi Arabia also hosts the International Energy Forum, which works to improve data quality and transparency in the sector. In June, the Kingdom’s output reached about 9 million barrels per day, with the modest increase attributed to logistical considerations. Al-Zayer stressed that it is common for producers to temporarily boost production to support maintenance operations or replenish storage, without impacting the broader market, since these barrels are not immediately traded.

He reiterated that Saudi Arabia has always honored OPEC+ production targets and has played a pivotal role in encouraging other members to meet their quotas.

Meanwhile, Dr. Mohammed Al-Sabban, former senior adviser to the Saudi Minister of Petroleum, explained that the Kingdom has consistently proven itself a reliable and secure supplier to global energy markets. He noted that Saudi Arabia’s recent statement clarified the reasons behind the June production uptick, emphasizing that the additional oil was neither destined for local consumption nor for export but was solely intended to refill domestic and foreign storage. He said such measures do not represent any breach of commitments, unlike the practices of some other countries.

Al-Sabban pointed out that Saudi Arabia has often gone beyond required cuts to help stabilize markets. Even the recent production increases, he said, fall within the scope of voluntary adjustments agreed upon by OPEC+ members. He noted that in July, Saudi Arabia raised production in line with credible studies indicating the market could absorb these volumes without disruption.