Iraq and Kazakhstan, as part of voluntary oil production cuts that some OPEC+ countries observed in the first half of the year, will make up for insufficiently reduced volumes of nearly 1 million barrels per day by the end of 2024, according to a message posted on OPEC's website.
OPEC specifies that the volume of overproduction of oil by Iraq in January-March amounted to 602,000 barrels per day, and by Kazakhstan for the same period - 389,000 barrels per day. “The plans presented by both sides indicate that all overproduction will be fully compensated by the end of the year,”, the report noted.
Iraq and Kazakhstan were to submit plans to compensate for reduced production volumes to the OPEC secretariat by April 30.
Starting in the first quarter of 2024, several countries in the alliance, including Russia and Saudi Arabia, are voluntarily cutting oil production by a total of 2.2 million barrels per day to balance the market. Initially, the measure was supposed to apply only in the first quarter, but at the beginning of March the countries of the alliance extended its effect to the second quarter.
According to these agreements, Kazakhstan must reduce production by 82 thousand barrels per day, and Iraq in the first quarter - by 221 thousand barrels per day, in the second quarter - by 223 thousand barrels per day. In January - March, however, these countries failed to fulfill their obligations to reduce oil production.
According to the compensation plan presented on the OPEC website, Iraq will reduce production by 50 thousand barrels per day per month from May to September, in October-November - by 100 thousand barrels per day, and in December - by 152 thousand b/s In turn, Kazakhstan will reduce production by 18 thousand barrels per day in May, by 131 thousand barrels per day in August, by 299 thousand barrels per day in October and by 40 thousand barrels per day in November.
At the same time, OPEC emphasizes that the overproduction of oil, the volume of which may increase in April, will be included in the compensation plan calculated for the remaining months of 2024.