OPEC's No.2 Cuts Oil Exports To Asia In Surprise Move
Source: Oilprice.com
By Tsvetana Paraskova
Iraq, OPEC’s second-biggest producer and the least compliant member in all previous rounds of cuts, has told some of its Asian oil buyers that it would not send the full contractual volumes requested for June, traders who were informed of the measure by Iraq’s state oil marketing company SOMO told Bloomberg on Wednesday.
At least three Asian oil customers who buy oil from Iraq were told not to expect the full volumes next month, according to Bloomberg’s sources.
It is a rare occurrence for OPEC’s biggest cheater in the previous OPEC+ pacts to reduce supply to its key market, Asia, and inform clients of reduced allocations even before Saudi Aramco, which is late with its allocations for June this month.
The reduction in Iraq’s exports could be a sign that even OPEC’s least compliant member is trying to play its part this time, as oil prices are so low that they are devastating Iraq’s primary budget income, oil revenues.
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