Iraq's Oil Minister Thamir Ghadhban has confirmed Iraq's commitment to the early December decision of the OPEC and its allies to cut oil production, according to a statement published on the ministry's website on Monday.
Ghadbhan’s remarks came at the meeting of the Ministerial Council of the Organization of Arab Petroleum Exporting Countries (OAPEC) held Sunday in Kuwait.
According to the statement, Ghadhban said that the responsibility was incumbent on all signatories of the decision including OPEC members and non-OPEC producers to commit to the reduction decision in order to control the abundance of global oil supply and support oil prices.
Noting that Saudi Arabia, Algeria, Kuwait and the United Arab Emirates had also confirmed their commitment to the decision to reduce production during the OAPEC meeting, Ghadhban said: "We expect the impact of the reduction decision to be positive on the global oil market and prices which are facing major challenges."
-Crude oil output to be cut by 1.2 million barrels
OPEC and non-OPEC members agreed on Dec. 7 to cut crude oil output by 1.2 million barrels per day (mbpd) to balance the global oil market.
Members agreed the cartel will curb production by 800,000 mbpd, while non-OPEC oil producers will cut an additional 400,000 bpd.
Saudi Arabia, the world's biggest crude oil exporter, has agreed to cut its production by 500,000 bpd, absorbing most of the cuts while non-OPEC Russia will curb its supply by around 228,000 bpd.
The supply cuts will be from October 2018 production levels of participating countries, and will take effect in January to last six months, according to a joint communique from the cartel and its allies, dubbed as OPEC+.
The parties to the decision have also signaled that additional measures will be on the table if markets need more stimulation from the supply side to support the prices.
By Hale Turkes