Once again, Iraq is debating whether to ask for an exemption from OPEC+ oil supply cuts, having suffered massive economic damage due to wars, sanctions, and a stubborn Islamist insurgency.
From May 1, OPEC+, a loose organization of 24 oil-producing nations led by Saudi Arabia and Russia, made a record output cut deal of 9.7 million barrels per day. The deal was modified on Aug. 1, with the group agreeing to taper output cuts to 7.7 million barrels per day until December 2020.
In May and June, Iraq had agreed to reduce its crude output by just over 1 million barrels per day. Since July, it has been eased to 849,000 barrels per day from July.
Brent oil, which fell to lows below $10 in April, recovered to levels above $46 last month. Prices have fallen back to $40 this week on weak demand. Major oil traders are again booking offshore storage tanks, a sign the global economic recovery is stalling.
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