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OPEC and allies may deepen oil cuts to 1.6 million bpd : sources

OPEC and allied oil producers will consider deepening their existing oil output cuts by about 400,000 barrels per day (bpd) to 1.6 million bpd, 

Thamer Ghadhban(Oil The minister of iraq) told reporters in Baghdad that the Organization of the Petroleum Exporting Countries and its allies, will consider increasing the cuts in their supply pact at meetings in Vienna this week.

OPEC oil exporters have coordinated output for three years to balance the market and support prices. Their current deal, which agreed to cut supply by 1.2 million bpd from January this year, expires at the end of March.

Iraq, OPEC’s second-biggest oil producer after Saudi Arabia, exported crude at an average rate of 3.5 million bpd in November, Its total oil output averaged 4.62 million bpd in November.

The TASS news agency reported,Russian Energy Minister Alexander Novak said he would prefer OPEC and its allies to wait until nearer April before making a decision on whether to extend the oil output deal.

The agreement with the Kurdistan Regional Government (KRG) caps production from the northern Iraqi region at 450,000 bpd, About 250,000 bpd of the KRG’s output will be handed over to the central Iraqi government and 200,000 bpd will be used by the region to pay back debt to foreign companies, Ghadhban added.

Reuters
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