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Chart of the Day: Compliance of Iraq, Russia, and Kazakhstan with Voluntary Cuts
Summary
Figure (1) shows trends in weekly seaborne crude exports of Iraq, Russia, and Kazakhstan. It shows that exports have been declining in all three countries in recent weeks. On average, the decline was about 370 kb/d. We remind readers that land exports via pipeline and trucks are not included, but the general assumption here is that these exports do not change much. However, the recent pressure from the Iraqi central government of the regional government of Kurdistan to cut production by 100 kb/d means a decline in exports via trucks. If this reduction takes place, we believe that Iraq’s seaborn exports will decline further. Some of the oil smuggled from Kurdistan is used within Iraq, allowing Iraq to export more from the south!