OPEC+ asks Iraq to submit a plan to compensate for excess oil production.

The OPEC+ Joint Ministerial Monitoring Committee (JMMC) has asked Iraq to submit an updated plan to compensate for excess oil production that exceeded its quota under production agreements.

The committee stressed the need for full compliance with the production cuts agreed upon by member states, emphasizing the importance of submitting a compensation plan before August 18, 2025.

This request comes as OPEC+ continues to closely monitor oil markets, amid moves to increase production by 548,000 barrels per day in September, as part of a gradual plan to ease some of the production cuts previously imposed by the organization.

The committee emphasized that adherence to production agreements is a fundamental pillar for maintaining oil market stability and supporting oil prices, especially given fluctuations in global demand.

The Joint Ministerial Monitoring Committee emphasized that its role is limited to monitoring member states’ compliance with production quotas. It does not have the authority to make final decisions regarding production levels, leaving this authority to official OPEC+ meetings.

It’s worth noting that OPEC+, which includes the world’s major oil producers including Iraq and Russia, currently produces about half of global oil production.

It had imposed strict production cuts in recent years to support the oil market, but since the beginning of 2025, it has begun gradually easing these cuts to regain its market share amid changing global demand.

In a related development, OPEC+ members are expected to hold a meeting in early August to discuss the possibility of an additional 548,000 barrels per day (bpd) increase in production for September, given the continued support for prices from summer demand and the failure of some countries to fully comply with their production quotas.

Shafaq.com