Iraq’s Balancing Act Amid OPEC+ Oil Cuts And Slow Demand

Iraq’s Balancing Act Amid OPEC+ Oil Cuts And Slow Demand

FILE -- In this Jan. 12, 2017 file photo, an Iraqi worker operates valves in Nihran Bin Omar field ... [+] north of Basra, 340 miles (550 kilometers) southeast of Baghdad, Iraq. Addressing an energy conference in Baghdad, Iraq's oil minister said Sunday, April 2, 2017, that the country plans to increase daily crude oil production to 5 million barrels by the end of this year, up from the current rate of about 4.4 million barrels per day. (AP Photo/ Nabil al-Jurani, File)



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Iraq's crude exports plummeted in June, reflecting improved compliance, as overall OPEC+ seaborne oil exports continued to decline further, according to vessel tracking data. Concurrently, Basrah exports to India, a major oil market for Iraq, rebounded following their fall in April and May, as New Delhi eased the pandemic-induced lockdown measures.



A slow recovery in global oil prices, meanwhile, gave Iraq's federal oil revenues a slight lift, but far below the finances the country needs. However, despite the financial losses from the painful oil cuts, improved compliance, even if brief, is better than pressing on with overproduction and coming under pressure from OPEC rivals when prices recover further.



The first part below