Oil's well as Iraq endorses cuts

The first Atlantic Council Global Energy Forum in Abu Dhabi saw Iraq ease fears on its commitment to the December Opec and non-Opec agreement to cut oil production.
Also, Opec Secretary-General Mohammad Sanusi Barkindo said on Thursday he was 'confident' about all the 24 countries - 13 Opec and 11 non-Opec - sticking to oil production cuts reached at the 'landmark' agreement.
"I remain very confident with what I have seen in the last several months. The level of commitment from both sides is unparalleled. We are less than two weeks into January but I can confidently tell that high-level of compliance is being expected from both sides."
The demand, Barkindo said, will continue to rise.
Oil prices rose more than $1 a barrel on reports that key Opec members were starting to cut production as promised.
Brent crude rose $1.20 a barrel to a high of $56.30 before easing slightly to trade around $56.20 by 1330GMT on Thursday. US light crude was up 95 cents at $53.20.
World oil supply projection 2017, according to the council data, showed Opec at 31.9 million barrel per day, non-Opec 52.5 mbpd to make a total of 96.9 mbpd.
"The demand will continue to grow in the region to about 1.2 to 1.3 million, which is healthy," he said.
Post December deal, Barkindo said, there is a positive environment, which is 'very welcoming'.
Speaking at oil market trajectories session, Iraqi Oil Minister Jabbar Al Luaibi confirmed his country would comply with agreement norms.
"Iraq has already taken measure to cut oil export by 170,000 barrel per day. We are moving fast to complete our cut by another 40,000 barrel per day to reach the level of 210,000 barrel per day that's the share of Iraq within Opec agreement. The government is committed to this. There is no game," he stressed.
Al Luaibi said the cut will be finished 'before the end of January'.
This, he said, is without including the Kurdistan Regional Government. "We will arrange the cut from KRG." This could be a worrisome exercise for Baghdad.

Al Luaibi also made a passionate case for Iraq. "Iraq is definitely committed to ensuring a positive outcome. Though, Iraq should have been exempted due to the extraordinary circumstances in the country. From fighting terrorism, Daesh to rebuilding infrastructure - hospital and other services, we are in desperate need of revenue to alleviate the pain of Iraqi people."
With regards to the future investment and petroleum sector, Al Luaibi said: "Our aim is to improve and increase the overall production capacity to compensate for the opportunities the country lost in the past three decades from sanctions, wars and other phenomenal. We have a strong will to upgrade overall petroleum infrastructure. We aim to have effective working relations with international oil companies."
According to Al Luaibi, the ministry is targeting to reach a final account with neighbouring countries regarding the issue of cross border oil and gas fields - a matter that has been set aside for decades.
Meanwhile, Saudi Arabia has cut oil output to its lowest in almost two years, its energy minister said on Thursday.
Energy Minister Khalid Al Falih said output had fallen below 10 million barrels per day - more than it had promised as part of a global output cut deal.
Al Falih, speaking at the forum in Abu Dhabi, said output was "not significantly below" 10 million bpd currently and the Kingdom planned to make even deeper cuts in February.
This means Saudi Arabia has cut oil production by more than the 486,000 bpd it agreed to late last year under a global deal to curb production and stem a fall in oil prices.
"We have been moving towards rebalancing the markets for some time," Al Falih said.
"Even better, the pace of rebalancing will be accelerated by recent production agreements within Opec and outside. I have confidence in these agreements to bring stability to the global markets."
Meanwhile, Kuwait's Minister of Oil, Electricity and Water Issam Abdul Al Marzouq said the December commitment needs the 'cooperation' of all the 24 countries.
"We have already cut our production to more than what we have committed so that everybody else follows us. It's in the interest of everybody that price level stays at a certain level where everyone is comfortable at," Al Marzouq said.
"We will come to a point where supply and demand will determine the right price."
Separately, UAE Minister of Energy Suhail bin Mohammed Faraj Al Mazroui said there is 'a fair movement' towards higher prices, though it isn't at a price the UAE would like.
"The real correction will happen when we see the actions of all of those concerned nations who came together to try to help the market," he said.
- ashwani@khaleejtimes.com