Iraq lowers June oil exports, still pumps above OPEC+ target

(Reuters) Iraq’s oil exports have fallen by almost 9% or 310,000 barrels per day (bpd) in June, loading data and industry sources showed, suggesting OPEC’s second-largest producer has delivered about three-fifths of its pledge in an OPEC-led supply cut deal.

Southern Iraqi exports in the first 28 days of June averaged 2.90 million bpd, tanker tracker Petro-Logistics, Refinitiv Eikon and an industry source found. That is down 200,000 bpd from May’s official southern exports figure.

“This is the lowest level of Basra exports in five years,” Daniel Gerber, chief executive of Petro-Logistics, told Reuters. “But Iraq still needs to cut by a further 300,000 bpd to achieve full compliance.”

The Organization of the Petroleum Exporting Countries andallies, known as OPEC+, began a record supply-cutting deal inMay to bolster oil prices hammered by the coronavirus crisis.Iraq is cutting output by 1.06 million bpd under the deal.

The June figures imply Iraq is making progress, but has yet to fulfil its pledge completely. Iraq has told OPEC+ it will make up for over-production in May and June through larger cuts in later months.

In May, Iraq delivered 38% of its pledged cut, a Reuters survey found, much lower than top exporter Saudi Arabia. If exports in June hold steady, adherence has risen to 60%, based on Reuters calculations.

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