Kuwait said on Thursday it would support any decision made by OPEC and its allies on future oil supply policy.
‘Kuwait fully supports the joint OPEC+ efforts to restore balance to the oil market, and going forward we will also support whatever necessary joint decision will be agreed to under the OPEC+ framework’, Kuwaiti Oil Minister Khaled al-Fadhel said in a report published by state news agency KUNA.
Kuwait’s production cap is at 2,297 million bpd after it had boosted its output to around 3.1 million bpd before the deal, meaning it is cutting about 26% of its output capacity, the data shows, Reuters reported.
Meanwhile, Iraq, OPEC’s second largest producer, is required to cut about 850,000 bpd. Baghdad, which needs oil revenue to rebuild after years of war and sectarian violence, has previously raised the possibility in talks with OPEC+ of exemption from the reductions next year, sources said.
‘Iraq will stay committed to OPEC+ cut deal and we will keep respecting out pledge, not only to cut production but also to compensate for the missing months until end year’, said a senior Iraqi oil official who attends OPEC meetings.
‘But, and here we have a big but, when OPEC will meet again to discuss 2021 plans it will be difficult for Iraq keep cutting output and exports with the same agreed share in 2020 because we are suffering a financial crisis which threatens the possible collapse of the Iraqi economy’, said the official.
‘All OPEC members must understand Iraq’s critical situation…when it comes to discuss a new cut extension deal’.
Iraq has failed to comply with its output targets but its compliance has been improving as it agreed to compensate for earlier overproduction by December.
‘For the rollover to work, I think the baselines and quotas need to be looked at again…when the name of the game is to produce and maximize your gains’ one source from an OPEC producing country said.