Oil Boosted by Iraq OPEC Cut Comments

Iraq is committed to cutting its production to comply with a global pact to support prices, the country’s oil minister said, adding he was nevertheless confident OPEC’s No. 2 producer has the potential to boost its output in coming years.

Iraq is reviewing several options to implement the reduction, including cuts from Kirkuk oilfield, southern fields being developed by oil majors or other state-run areas, Oil Minister Jabar al-Luaibi said in an interview.

“The cuts will aim at the figures we agreed with OPEC definitely, but (for) the areas of the cuts there are many options on the table,” Luaibi told Reuters on Saturday.

Last month, OPEC agreed to cut output by 1.2 million bpd from January 2017. Baghdad, which has called to be exempted from OPEC restrictions as it needs the income to fight Islamic State, would reduce its output by around 200,000 barrels per day to 4.351 million bpd.

Via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza