Riyadh: Saudi Arabia and Iraq have expressed their commitment to abiding by an agreement to cut oil production that was signed between the Organisation of the Petroleum Exporting Countries (OPEC) and 10 other nations, the media reported on Thursday.
The two countries assured their complete commitment to reducing production during a meeting held on Wednesday night between Saudi Crown Prince Mohammad bin Salman and Iraqi oil minister Jabar al-Luaibi, reports Efe news.
The agreement was signed last December by the 14 OPEC member states and a Russia-led group of 10 other countries; it is aimed at reducing their joint production by 1.8 million barrels a day to stabilise prices.
Despite having been extended until March 2018, the agreement has not been properly implemented by some of the countries, including Iraq, Kazakhstan, the US and Malaysia, among others, according to data from the International Energy Agency.
The overproduction resulting from the incomplete compliance with the pact, together with the increase in production in the US, has maintained a situation of oversupply in the market.
Updated Date: Aug 10, 2017 14:44 PM