The Iraqi Oil Minister, Hayan Abdul Ghani, announced that his country will not accept any additional cuts in oil production during the next meeting of the OPEC+ alliance, scheduled to be held at the beginning of next month.

Abdul Ghani stressed, on the sidelines of an oil and gas licensing conference in Baghdad, that Iraq has already made significant reductions in its oil production, and that it will not agree to any new reductions.

Although his statements left some ambiguity about whether he opposes extending the current cuts or only opposes additional measures, they send a clear message about Iraq’s position on dealing with its production quota.

This announcement comes in light of reports that the coalition – which includes the Organization of the Petroleum Exporting Countries, Russia and other non-member producers – could extend the voluntary cuts if demand for oil does not improve.

The oil sector faces increasing challenges related to decarbonization pressures, especially with increasing pressure on the International Maritime Organization to impose fees on greenhouse gas emissions, in a step expected to begin by September 2024 with the aim of reaching net zero emissions by 2050.

It should be noted that Iraq exceeded its production quota set by OPEC+ by 602,000 barrels per day during the first three months of 2024. Which prompted the state to pledge to compensate for this surplus with additional reductions throughout the year.

These movements indicate ongoing challenges within the oil bloc in managing production levels in light of the economic needs of member states and global environmental pressures.