Oil & Gas Opec quotas force Iraq, Russia and Kazakhstan oil cuts By Eva Levesque July 25, 2024, 11:07 AM Alamy/Aizhong Wang Iraq and Kazakhstan will begin cutting oil production this month, while Russian cuts are due in October Q1 overproduction 2.3 million bpd Iraq led with 1.2 million bpd Russian cuts due in October Opec+ members that have failed to comply with output cuts, including Iraq, Russia and Kazakhstan, have agreed to reduce their production in the coming months to compensate for breaking agreed quotas. The combined overproduction from the three members totalled 2.3 million barrels per day (bpd) during the first half of the year, according to an assessment by secondary sources, Opec said in a statement. Iraq overproduced 1.2 million bpd, Russia 480,000 bpd and Kazakhstan 620,000 bpd. Opec uses independent sources, which include international consultancies, to assess capacity and output figures. Iraq and Kazakhstan will start trimming their output this month, while Russia will begin cuts in October 2024. According to the plan presented on Wednesday by the three countries, the overproduced volumes will be fully compensated by September 2025. Analysts optimistic on oil but the price stays steady ‘Huge’ oil discovery could change the game for Kuwait Upstream oil and gas ‘needs more annual investment’ Iraq, Opec’s second-largest producer behind Saudi Arabia, has repeatedly pledged to compensate for pumping over its quota. But it has been constantly overproducing. The country has in the past disputed the organisation's assessment of its output and quotas, as it seeks to maximise its revenues to rebuild its economy. Russia’s fuel exports have also increased as refineries restarted production after they were damaged by Ukrainian drone attacks. Russia needs revenues to finance its ongoing invasion. NewsletterGet the Best of AGBI delivered straight to your inbox every week Saudi Arabian officials expressed concerns about Russia’s overproduction during a recent call with Russian deputy prime minister Alexander Novak, according to Reuters. Riyadh needs oil prices to remain high to finance its economic diversification and giga-projects. Yet Opec members' non-compliance with quotas offsets its efforts to push prices up. Despite growing geopolitical tensions, the market remains feeble amid disappointing demand from China -- the main engine of world crude demand --high interest rates and rising US crude output. Brent prices oscillate around $80 a barrel. The International Monetary Fund has lowered its forecast for economic growth in Saudi Arabia by almost an entire percentage point due to cuts in oil production. In June Opec extended part of its output cuts into 2025.