OPEC Receives Updated Output Compensation Plans from Iraq and Kazakhstan

Iraq and Kazakhstan submitted updated output compensation plans to OPEC, intending to make up for their overproduction by September 2025. OPEC+ has implemented output cuts since late 2022 to support the market, extending most cuts until the end of 2025. Iraq and Russia reaffirmed their commitment to reducing excess output.

In a significant move, Iraq and Kazakhstan have provided OPEC with updated plans to compensate for their overproduction in the first seven months of the year. Both countries are aiming to rectify this by September 2025, as outlined by the producer group on Thursday.

OPEC, alongside other major producers including Russia, collectively known as OPEC+, has been enforcing a series of output cuts since late 2022 to stabilize the market. These cuts are largely set to continue until the end of 2025. OPEC disclosed that Iraq's overproduction from January through July was 1.4 million barrels per day (bpd), while Kazakhstan exceeded by 699,000 bpd.

Iraq's oil ministry reaffirmed its commitment, stating that it has made concrete steps to lower production levels and compensate for the excess. This move highlights Iraq's dedication to the joint OPEC+ efforts aimed at achieving market stability. Similarly, Russia, despite exceeding its July quota, has pledged to comply with agreed output levels and address the surplus. OPEC+ confirmed plans to start easing the most recent 2.2 million bpd cuts from October, though adjustments could be made as needed.

(With inputs from agencies.)