ERBIL (Kurdistan 24) – August saw the first increase in output for the Organization of the Petroleum Exporting Countries (OPEC) as a result of higher supply from both Iraq and Nigeria, Reuters reported on Friday.
The total amount for the month pumped by all 14 members of the intergovernmental organization equals 29.61 million barrels per day (bpd), up 80,000 bpd from July’s revised figure which was the lowest total since 2014.
Iraq, OPEC’s second-largest oil producer following Saudi Arabia, almost entirely relies on oil to generate its revenue.
In January, Baghdad reluctantly agreed to an output-cutting deal made by an alliance of oil giants known as OPEC+ that aimed to bolster petroleum prices and “restore balance between supply and demand“ in the market.
A recent Reuters survey indicated that Saudi Arabia is not deviating from the plan to restrict output, but August's increases by Iraq and Nigeria was apparently enough to outweigh both this and additional losses caused by US sanctions on Iran.
“Even the moderate demand growth that can be expected is likely – given the considerable production discipline shown by OPEC – to result in an ongoing tightening of supply and to support rising prices,” Commerzbank analyst Eugen Weinberg said.
On Wednesday, Iraq announced it plans to build a new pipeline to transport crude oil from the disputed province of Kirkuk to Turkey.
Iraqi Oil Minister Thamer al-Ghadhban made the remarks in a press conference following meetings between Fatih Dönmez, Turkey’s Minister of Energy and Natural Resources, and several other officials.
Ghadhban said Wednesday’s meeting was a follow-up to Iraqi Prime Minister Adil Abdul Mahdi’s agreement with Turkish President Recep Tayyip Erdogan in Turkey earlier this year and that it “focused on strengthening ties between the two countries and developing economic and trade connections, especially in the energy sector with gas, oil, and electricity.”
On Nov. 16, 2018, the Federal Government of Iraq restarted exports of Kirkuk oil to Turkey through the Kurdistan Region’s oil pipeline at a rate of around 50,000 bpd.