Iraq’s Oil Marketing Company (SOMO) has made significant cuts in Basra crude supplies to Asia for the upcoming July as Iraq steps up efforts to comply with OPEC+ cuts, according to Reuters.
For July, Iraq’s Basra crude supply cuts in Asia ranged from 30% to 100% of contract volumes, with each contract having different proportions of cuts. For example, for two Indian buyers the cuts represented 36% and 75% of their monthly contract volumes.
Estimated Basra crude supply for July will be 15% to 20% lower than normal levels.
Iraq has made a number of additional concessions to help its compliance in OPEC+ cuts, including requesting BP cut its crude production by 10% at the southern field of Rumaila. The Iraqi oil minister, Ihsan Abdul Jabbar Ismail, also confirmed that the Iraqi oil ministry had requested Kurdish authorities in northern Iraq to limit their exports to 370,000 bbl/d from the beginning of June.
Iraq planned to export 2.8 million bpd of Basra crude from its southern ports in June.