Iraq, UAE, Kazakhstan Recommit to Oil Cut Deal

Iraq, UAE, Kazakhstan Recommit to Oil Cut Deal

Iraq, the UAE, and Kazakhstan, reiterated their support for January’s production-cut agreement between OPEC and other major oil producers, according to a statement released by OPEC, Egypt Oil & Gas reports.

Delegations from the three nations met with representatives of Russia, Kuwait, and Saudi Arabia in Abu Dhabi this week to discuss their failure to institute agreed-upon production cuts, according to Bloomberg. Malaysia also attended the meetings.

“The UAE, Iraq, Kazakhstan, and Malaysia all expressed their full support for the existing monitoring mechanism and their willingness to fully cooperate with the JTC [Joint OPEC-Non-OPEC Technical Committee] and JMMC [Joint OPEC-Non-OPEC Ministerial Monitoring Committee] in the months ahead in order to achieve the goal of reaching full conformity,” OPEC announced in a press release.

After the meetings in Abu Dhabi, the Iraqi Oil Minister visited Saudi Arabia for a meeting with his Saudi counterpart, Reuters reports.

In January 2017, many of the world’s largest oil producers, including  Russia and OPEC members, joined together to sign a Declaration of Cooperation, committing themselves to cut production by 1.8 million barrels of oil a day (b/d).

Despite the agreement, prices have fallen 8% during 2017, according to Bloomberg. Hampering a price recovery, some nations have increased production or failed to make the required cuts.

Nigeria and Libya, two OPEC members exempted from cuts under the agreement, have increased production, according to Reuters.

Kazakhstan, while bound by its commitment to reduce production, has instead increased it. Iraq and the UAE, while professing adherence to the agreement, have failed to fully comply with their commitments, according to Bloomberg.

According to date from the International Energy Agency, Iraqi was only 29% compliant and the UAE 60% compliant with their commitments, Bloomberg reports.


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