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Iraq begins oil output cuts in line with OPEC agreement

Iraq said Thursday it began measures to cut down its petroleum production in line with an agreement with the world’s top oil producers to reduce output to prop up prices.

Oil minister ali al-Luaibi said his country started with the advent of the new year to cut national crude oil production in line with an historic OPEC agreement reached in December.

“Iraq stresses its commitment to the OPEC decision adopted during the latest meeting in Vienna, applying a well-studied plan to reduce production from the county’s oilfields at the beginning of the new year,” the minister said in a statement by the ministry.

He said his country is working with OPEC members and non-members to control the huge supply in the world market, and to achieve the required balance between supply and demand in a way that boosts prices.

Luaibi added that there will be no need for the cuts once producers’ goals are achieved.

OPEC producers agreed in December to cut daily production by 1.2 million barrels a day starting January. Iraq pledged to cut 210.000 barrels a day after a long-time reluctance as it had complained of a crisis-hit economy and struggle against terrorism.

Current Brent Crude rates stand at more than US$55 per barrel.