Skip to content Skip to Search
Skip navigation

Opec quotas force Iraq, Russia and Kazakhstan oil cuts

Iraq Russia Kazakhstan oil cuts 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.

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.



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.

Latest articles

AlAbraaj has several franchises in Saudi Arabia, including Mezza-W-Mashawi at Riyadh's King Khalid airport

Restaurant chain AlAbraaj plans IPO on Bahrain Bourse

AlAbraaj Restaurants Group is planning to list on Bahrain Bourse before the end of 2024. Founded in 1987, the restaurant chain manages 15 brands across 37 locations in Bahrain. It employs about 1,200 people. AlAbraaj also franchises five restaurants, three of which are in Saudi Arabia – Khobar, Jeddah and Riyadh. The company is finalising […]

DP World Australia operates four container ports and is taking on more than 40 Silk Logistics sites

DP World to acquire Australia’s Silk Logistics

DP World Australia has announced plans to acquire the freight and logistics service provider Silk Logistics Holdings, in a deal worth A$174.5 million ($114.9 million). The Australian subsidiary of Dubai’s DP World will buy Silk Logistics at a price of A$2.14 ($1.40) per share.  The transaction is subject to shareholder approval and regulatory approvals, and is […]

A Talabat delivery driver in Doha, Qatar

Talabat focusing on core markets ahead of listing, says CFO

Food delivery app Talabat aims to prioritise organic growth over geographical expansion, its chief financial officer says, as it prepares to launch one of the region’s largest listings. Delivery Hero, the German parent company of the UAE-headquartered app, announced on Monday that it plans to sell a 15 percent stake in Talabat.  The initial public […]

Fertiglobe dropped to a loss in Q3 after its own-produced sales volumes fell

Fertiglobe logs net loss, weeks after Adnoc buys stake

Fertiliser maker Fertiglobe has reported a net loss of $10.4 million for the third quarter of 2024 – a sharp drop from the $39.6 million profit generated in the same period last year. The Abu Dhabi company’s revenue in Q3 2024 fell to $495.6 million versus $525 million in Q3 2023. Analysts had estimated a […]