Iraq to cut oil exports in May to meet OPEC+ quota

Iraq plans to cut its oil exports by 100,000 barrels per day (bpd), according to Bloomberg, citing an informed source. The decision to reduce supply to 3.2 million bpd comes amid pressure from OPEC+, which is pushing member countries to comply with production limits.

The country, which had previously exceeded the quotas to fund government spending, is now being forced to scale back its output. According to the International Energy Agency (IEA), Iraq pumped over 300,000 barrels above its quota last month. Bloomberg notes that such violations raise doubts about the country’s ability to meet its OPEC+ commitments. Meanwhile, the International Monetary Fund estimates Iraq would need oil prices to hit $92 a barrel this year to cover its planned expenditures.

Iraq is trimming its exports in an effort to ease pressure from the cartel, but questions linger about its commitment to full compliance. The country has a track record of missing production targets, raising doubts about its ability to adhere to the latest agreement. As Bloomberg reports, the success of this effort will ultimately come down to whether Iraq's actual output matches its pledged cuts.