IRAQ DATA: August oil output up 1.9% on month, below OPEC+ quota

Iraq's oil production, including flows from the semi-autonomous Kurdistan region, rose 1.9% month on month in August, State Oil Marketing Organization said Sept. 9, even as the country pumped below its OPEC+ quota.

OPEC's second-biggest producer pumped an average 3.961 million b/d in August, compared with 3.886 million b/d in July, SOMO data showed.

Iraq's OPEC+ quota rose to 4.061 million b/d in August from 4.016 million b/d in July as the coalition continued to raise production caps.

Iraq's September quota is 4.105 million b/d as the OPEC+ coalition continues to relax production cuts by 400,000 b/d each month between August and December, aimed at adding 2 million b/d by the end of 2021.

Total exports rose 2.1% to 3.419 million b/d in August, as federal volumes increased by 4.7% to 3.054 million b/d and Kurdish flows fell 14% to 365,000 b/d, according to SOMO data.

Domestic use, which includes crude burn and refinery runs, rose 9.2% to 547,000 b/d.

Stocks at the end of August saw a drawdown of 5,000 b/d, compared with a 41,000 b/d build-up in July.

Better compliance

Iraq struggled for most of 2020 and at the beginning of 2021 to adhere to its OPEC+ quota amid the COVID-19 pandemic, the oil price rout, and the financial crisis gripping the country.

However, compliance has improved in the past few months as its quota has risen.

OPEC+ clinched an agreement July 18 to raise its crude oil production between August and December, while also allocating five members more generous output quotas starting May 2022.

Iraq was one of the five countries that negotiated a higher baseline for its quota, which will rise from 4.653 million b/d through April 2022 to 4.803 million b/d from May 2022.

The deal also extends the OPEC+ supply management pact to the end of 2022, from its previous expiry of April 2022.

The next OPEC+ meeting is scheduled for Oct. 4.