(MENAFN) In a recent development, the OPEC+ alliance announced that Iraq and Kazakhstan, both members of the coalition, have committed to compensating for exceeding their allocated oil production quotas by implementing additional production cuts for the remainder of the current year. This decision comes after both countries initially hesitated to adhere to their pledged production reductions, which were agreed upon by other members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia.
Following discussions held during an online meeting on Friday, OPEC+ revealed that Iraq and Kazakhstan had agreed in April to formulate plans outlining how they would achieve full compliance with their production quotas. According to statements issued by the alliance, Iraq exceeded its quota by pumping a total of 602,000 barrels per day during the first three months of 2024, while Kazakhstan surpassed its quota by pumping 389,000 barrels per day during the same period.
The agreed-upon plans between Iraq and Kazakhstan outline detailed strategies for fully compensating for the excess production by the end of the current year. These strategies primarily involve implementing larger reductions in production to offset the surplus amounts generated in the earlier months. OPEC emphasized that any surplus production observed from April onwards would be factored into the compensation plans devised by both countries for the remainder of 2024.
This development underscores the commitment of OPEC+ members to maintaining stability in global oil markets through coordinated production adjustments. By ensuring adherence to production quotas, the alliance aims to mitigate volatility and support oil prices while fostering cooperation among member countries. The agreement between Iraq and Kazakhstan represents a step towards reinforcing the collective efforts of OPEC+ in managing oil supply and demand dynamics effectively.
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