OPEC Authorizes Iraq to Increase Output to 4.5 Mln Bpd

Oil tanks are seen at the gas field of Siba in Basra, Iraq April 25, 2018. (Reuters)
Oil tanks are seen at the gas field of Siba in Basra, Iraq April 25, 2018. (Reuters)
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OPEC Authorizes Iraq to Increase Output to 4.5 Mln Bpd

Oil tanks are seen at the gas field of Siba in Basra, Iraq April 25, 2018. (Reuters)
Oil tanks are seen at the gas field of Siba in Basra, Iraq April 25, 2018. (Reuters)

Iraq’s representative at OPEC said the organization had agreed to the country increasing its output to 4.5 million barrels of oil per day (bpd) starting from June, the state news agency (INA) reported on Saturday.

There will be further increases of 50,000 bpd in output in each of the months July, August and September, INA added, citing Muhammad Saadoun’s statements.

Iraq pumped 4.43 million barrels per day (bpd) of oil in April, 16,000 bpd above its OPEC+ quota for that month, according to data from state-owned marketer SOMO seen by Reuters on May 11.

Iraq’s March production was impacted by field outages in the south, pushing its output 222,000 bpd below the production ceiling for that month.

Like several other OPEC members, Iraq has struggled to pump more oil at a time of already tight global supply and soaring prices.

Almost half the global shortfall in planned oil supply by OPEC and its allies – a grouping known as OPEC+ – is down to Nigeria and Angola, due to several factors including the exit by Western oil majors from African projects.

OPEC+ produced 1.45 million barrels per day (bpd) below its production targets in March, as Russian output began to decline following sanctions imposed by the West, a report from the producer alliance seen by Reuters showed.

Russia produced about 300,000 bpd below its target in March at 10.018 million bpd, based on secondary sources, the report showed.

OPEC+ compliance with the production cuts rose to 157 percent in March, from 132 percent in February, the data showed, the highest since the group introduced record production cuts of about 10 million bpd in May 2020 to counter the impact of the pandemic on demand.

OPEC+ agreed last month to another modest monthly oil output boost of 432,000 bpd for May, resisting pressure by major consumers to pump more.

As the group unwinds production cuts, several producers, namely West African countries struggling with under-investment and an exodus of international energy companies, are failing to keep up.

At its meeting last month, OPEC+ also ditched the Paris-based IEA as one of its secondary sources, replacing it with consultancies Wood Mackenzie and Rystad Energy.

Oil prices rose about 4 percent on Friday as US gasoline prices jumped to a record high, China looked ready to ease pandemic restrictions and investors worried supplies will tighten if the European Union bans Russian oil.

Brent futures rose $4.10, or 3.8 percent, to settle at $111.55 a barrel. US West Texas Intermediate (WTI) crude rose $4.36, or 4.1 percent, to settle at $110.49.

US gasoline futures soared to an all-time high after stockpiles fell last week for a sixth straight week.

That boosted the gasoline crack spread - a measure of refining profit margins - to its highest since it hit a record in April 2020 when WTI finished in negative territory.

Oil prices have been volatile, supported by worries a possible EU ban on Russian oil could tighten supplies but pressured by fears that a resurgent COVID-19 pandemic could cut global demand.

This week, Moscow slapped sanctions on several European energy companies.

In China, authorities pledged to support the economy and city officials said Shanghai would start to ease coronavirus traffic restrictions and open shops this month.



From Russia, Alkhorayef Says Saudi Aims to Lead in Future Tech

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)
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From Russia, Alkhorayef Says Saudi Aims to Lead in Future Tech

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)

Saudi Arabia is leading a sweeping industrial transformation aimed at reshaping the national economy and securing a leading position in advanced sectors, the kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef said.

Speaking at the main session of the INNOPROM 2025 international industry fair in Yekaterinburg, Russia, Alkhorayef highlighted Saudi Arabia’s early adoption of future technologies and its efforts to boost production capabilities within global value chains.

He outlined that the National Industrial Strategy, launched in 2022, serves as the operational framework for the kingdom’s industrial vision. The strategy focuses on three integrated pillars targeting key industrial groups. The first pillar covers industries related to national security — including food, pharmaceuticals, water, and military sectors — which Saudi Arabia aims to localize through active partnerships.

Alkhorayef said the second pillar focuses on industries that leverage Saudi Arabia’s relative advantages, including abundant natural resources such as oil, gas, and minerals, as well as its strategic geographic location that positions the kingdom as a global logistics hub. Key sectors under this pillar include advanced petrochemicals, mining, and value-added manufacturing.

The third pillar targets future-oriented and emerging technologies. Saudi Arabia aims to strengthen its position in the early adoption of cutting-edge technologies through clear incentive policies.

These include support for research and development, applications of the Fourth Industrial Revolution, artificial intelligence, and 3D printing. Complementary measures such as the local content policy prioritize domestic products and bolster reliance on national capabilities, he added.

Alkhorayef also outlined recent developments in the kingdom’s mining sector, a key focus of Vision 2030. He said efforts have followed three main tracks, starting with expanded geological exploration that boosted the estimated value of Saudi mineral reserves from $1.3 trillion to $2.5 trillion. These reserves include strategic minerals such as phosphate and copper, with ongoing attention to social and environmental considerations in mining areas.

The second track involves strengthening international partnerships through the annual Riyadh International Mining Conference, which has evolved into a global platform addressing challenges related to securing critical raw materials for the energy transition.

The conference fosters coordination among governments, private sector players, and academic and research institutions to enhance the mining sector’s efficiency and sustainability. Alkhorayef expressed gratitude for the Russian government’s contributions to the event.

Highlighting strong Saudi-Russian ties, he said there are promising opportunities to deepen cooperation, particularly given the alignment between Saudi Vision 2030 and Russia’s 2030 national development goals in economic growth, digital transformation, and technological leadership.

Alkhorayef noted that the launch of the Saudi-Russian Joint Committee in 2002 and the opening of the Saudi commercial attaché office in Moscow in 2022 marked key milestones in advancing the partnership. He pointed to significant growth in bilateral trade, which surged from $491 million in 2016 to over $3.28 billion in 2024.