Saudi Arabia and Iraq discuss recent developments in the oil market

Saudi-Russian discussions on Oil Market, cooperation aspects

HRH Prince Abdulaziz bin Salman Al Saud; Minister of Energy, had a phone discussion with HE Ihsan AbdulJabbar Ismail; Iraqi Minister of Oil.

The call between the two Ministers focused on recent developments in the oil market, the continued recovery in global oil demand, and the progress made towards the implementation of the OPEC+ agreement.

At the end of the call, Saudi Arabia and Iraq reaffirmed their full commitment to the OPEC+ agreement.

HE Minister Ismail confirmed Iraq’s firm commitment to the OPEC+ agreement, and added that Iraq would reach 100 percent conformity by the beginning of August.

He pledged that Iraq will further reduce production by 400,000 barrels per day in the months of August and September, to compensate for its overproduction in May, June and July.

He explained that the reduction is in addition to the 850,000 barrels per day that Iraq has committed to cut in August and September under the current OPEC+ agreement. The total cut to Iraq’s production in August and September will amount to 1.25 Million barrels per day for each month. The reduction could be adjusted when the six secondary sources publish their production figures.

At the end of the call, HRH Prince Abdulaziz bin Salman thanked HE Minister Ismail for his efforts to improve Iraq’s compliance with the OPEC+ agreement. The two Ministers stressed that efforts by OPEC+ countries towards meeting production cuts and the extra cuts under the compensation regime, will enhance oil market stability, help accelerate the rebalancing of global oil markets and send a constructive signal to the market.